7 Things A Prospective Homebuyer Should Avoid Doing

You have some idea about what to do if you are dreaming to become a homeowner soon. While focusing on those points you may pay enough attention to things that you need to avoid doing to make sure the dream is realised soon enough.

Buying impulsively? Calm down

Urban life has its many demerits — we are often lonely and stressed. To unwind ourselves, we often make use of the retail therapy — this is to say, we flash our credit cards at the cashier to finish purchasing objects we often can't afford and more often do not require. While this exercise may have a temporary calming effect, its adverse impact on your finance is undeniable. A future homebuyer would devise other methods to deal with stress and boredom; indulging in retail therapy may derail his plans of buying a property in the near future.

Failing to pay your bills? Clear them

This is often co-related with the previous problem. Because only a swipe of a plastic currency is done to make objects your own in a matter of minutes while you involve in retail therapy, you often do not realise what kind of financial liability you are imposing on yourself. This may result in you defaulting on repayment. Recurring occurrences of this nature would mean a poor credit score, based on which banks assess your creditworthiness. You should also diligently pay off your other loans in case you borrowed for some other purpose. It would also be better to clear small loans before you sign up for the big one.

Planning job change? Hold on

Banks accept or reject your home loan application purely based on your earning potential. Your professional record is thoroughly examined by a team specifically appointed by financial institutions to eliminate any chances of risks that might arise if loans are sanctioned to an “unstable” person. While frequent job changes should even otherwise be avoided, you have to be more careful if you plan to buy a house. Stick with one job for at least a year before you submit your loan application.

Are you technologically challenged? Change it

Everything is online these days. From the selection of a property to the very purchase, everything can be materialised using the internet even in real estate. While the process may be slow, even government agencies whose help you would need to complete the transaction offer services online. For instance, you will soon be able to register your property online in Uttar Pradesh as the state is training its staff to launch services from November this year. In times like this, being a technologically-challenged individual would just not do. Take classes to familiarise yourself with the internet, if need be.

Not much of a talker? Start talking

You may like to keep to yourself in general, but when it comes to property matters taking others' opinion really matters. Taking on board your spouse about the matter is not all. Outside help must be sought to get a better understanding of the process. For instance, someone who recently bought a property would be in a position to give insights about the process. Someone who is living in the complex/locality you are planning to buy a property in knows better than what the developer would tell you. Also, your parents, friends and neighbour can also give you useful tips to breeze through the process.

Do not like to go by the book? Start reading

Not everyone enjoys reading. In fact, some of us barely managed to survive the academic life. This is certainly the time to start reading, voracious reading would be preferable. Familiarise yourself with rules and regulations involving property purchases—read the law on that account. Also familiarise yourself with tax-related matters — read about what would be your tax liability. Arm yourself with the knowledge of how the banking system works — you have to apply for a loan after all. Being a Jack of all these trades would turn out really useful. Also, the world of real estate is ever changing — you must also follow the ongoing developments in property markets. Take the help of real-estate specific TV channels, newspapers, magazines, online portals, etc., to keep yourself updates.

Like to do everything on your own? Let go

While discussing, parleying, reading and keeping yourself updated would ensure you are not duped at any stage, this is not to say you have to entirely depend on your personal skills to complete the purchase. Be open to the idea of hiring the services of a lawyer, a broker, an interior decorator, a chartered accountant, etc., to make sure the buying process goes smoothly. While making sure that you do not remain without a clue on matters, taking the assistances of experts is preferable.