Mistakes to Avoid as a First Home Buyer

Planning to buy your first home? Congratulations. You must be quite excited and a nervous too. Indeed, buying a home is one of the biggest investments you’ll make in life. So skip the stress by educating yourself about the property market and avoid these common mistakes many first home buyers make.

Not Having Enough Savings to Purchase a House

To purchase a house, you must have 20 per cent of the purchase price upfront as a deposit to get the best rate and terms on your home loan. However, that's not enough. Don't forget to keep some extra cash to cover the accessory costs such as stamp duty, lender and agent fees, insurance, etc. lest you find yourself scrambling for funds at the last moment.

Having a Low Credit Score

Your credit score is the most important number in your financial life. Depending on your financial conduct, financial bureaus sum up your credit history into a number that determines the fate of your home loan application to a great extent.

Therefore, it is recommended to check your credit file regularly for any incorrect entries. Also, make sure to pay all your bills on time to keep your credit score from going down.

Biting More Than You Can Chew

Lenders use various factors to calculate your borrowing capacity. However, it isn’t a great idea to borrow the entire amount lenders are willing to give you. To determine the size of your mortgage, calculate how much money you can spare for your home loan repayment each month to avoid mortgage stress in the future.

Not Doing Your Homework

A real estate agent is a good way to start your search for established homes or new projects in Pune. However, it is no substitute for personal research. Currently, there are several residential projects in Pune such as Godrej Active that promise great accommodation at affordable rates. Have you surveyed the real estate market properly before choosing your first home?

Remember, buying a home is an important decision and it will affect your finances for a long time to come. Besides, you are going to live in your own home for many years, and it only makes sense to buy a home that is not only optimally priced but also conveniently located and designed according to your lifestyle. Look for projects by reputed builders that are RERA compliant to ensure your investment is safe. Some of the upcoming projects include Godrej Active and Infinity in Keshav Nagar and a few others in Hinjewadi, Pune.