5 Errors to Avoid While Buying a Property
Nov 22, 2016 Home Trading Steps
With the expansion of real estate market, buying a dream property has become more challenging. It is not only because of the of property options available to you but also because of finding the most suitable mortgage loan among the varieties offered by different banks has become very tricky.
Therefore, before buying a property do a good amount of pre-purchase inspection, based on the parameters mentioned below.
Finding the best mortgage loan is very important.
First and foremost, you must calculate the amount you can dedicate to your property while maintaining the expenses related to your lifestyle. Mostly this amount is set by the brokers as Gross Debt Service (GDS) ratio. You should not only consider your property’s base cost but also the real estate transfer rights, notary fees and moving expenses while calculating your property related expenses. Additional funds for an emergency should also be planned. Then only you should estimate your mortgage loan because mistakes in choosing the mortgage loan may cost you heavily and hinder your lifestyle.
Demand for Pre-Authorization on a Mortgage Loan.
If the property that you are willing to buy has many other competing offers, a pre-authorization may give you an edge over other claimants. Moreover, these days many sellers want their potential buyers to secure a pre-authorization mortgage loan. Remember that, this process takes several days. In order to get a pre-authorization, you have to submit information like your proof of income and your amount for down payment at your financial institution. Only if you meet the criteria set by the lending agency, you will receive a written pre-authorization. But you have to understand that pre-authorization does not guarantee issuance of a mortgage loan.
Be mindful of your basic needs.
When you are planning to buy a new property, you must be very clear about what you are looking for. You must take into account whether basic amenities like grocery, health care centre and other human resource facilities are available to you. Also, consider the communicability and transport facilities in your preferred location. You should also check the crime rate in the area before you buy a house. You can make a list of priorities regarding your new house and match this list with your preferred properties before you finalise.
Do a pre-purchase inspection on your Future Property.
Even if a report from a property inspector has been produced, it would be wise of you to conduct a pre-purchase inspection of the property under consideration. For this, you might have to shed some money, but that is always better than regretting later on.
Don’t be overridden by your emotions.
A property that might have a lot of emotional value to the seller need not have a good market value. Therefore, while doing property transactions you should always be guided by reasons and not emotions. Being practical and calculative will always benefit you in the long run.
If you avoid such errors mentioned above, it is expected that you would not fall into the loopholes of the real estate market.
Henceforth, in order to have a hassle free property buying process you have to be practical and factually correct. So consider these pointers in mind while buying or investing in a property and become a smart buyer.
Therefore, before buying a property do a good amount of pre-purchase inspection, based on the parameters mentioned below.
Finding the best mortgage loan is very important.
First and foremost, you must calculate the amount you can dedicate to your property while maintaining the expenses related to your lifestyle. Mostly this amount is set by the brokers as Gross Debt Service (GDS) ratio. You should not only consider your property’s base cost but also the real estate transfer rights, notary fees and moving expenses while calculating your property related expenses. Additional funds for an emergency should also be planned. Then only you should estimate your mortgage loan because mistakes in choosing the mortgage loan may cost you heavily and hinder your lifestyle.
Demand for Pre-Authorization on a Mortgage Loan.
If the property that you are willing to buy has many other competing offers, a pre-authorization may give you an edge over other claimants. Moreover, these days many sellers want their potential buyers to secure a pre-authorization mortgage loan. Remember that, this process takes several days. In order to get a pre-authorization, you have to submit information like your proof of income and your amount for down payment at your financial institution. Only if you meet the criteria set by the lending agency, you will receive a written pre-authorization. But you have to understand that pre-authorization does not guarantee issuance of a mortgage loan.
Be mindful of your basic needs.
When you are planning to buy a new property, you must be very clear about what you are looking for. You must take into account whether basic amenities like grocery, health care centre and other human resource facilities are available to you. Also, consider the communicability and transport facilities in your preferred location. You should also check the crime rate in the area before you buy a house. You can make a list of priorities regarding your new house and match this list with your preferred properties before you finalise.
Do a pre-purchase inspection on your Future Property.
Even if a report from a property inspector has been produced, it would be wise of you to conduct a pre-purchase inspection of the property under consideration. For this, you might have to shed some money, but that is always better than regretting later on.
Don’t be overridden by your emotions.
A property that might have a lot of emotional value to the seller need not have a good market value. Therefore, while doing property transactions you should always be guided by reasons and not emotions. Being practical and calculative will always benefit you in the long run.
If you avoid such errors mentioned above, it is expected that you would not fall into the loopholes of the real estate market.
Henceforth, in order to have a hassle free property buying process you have to be practical and factually correct. So consider these pointers in mind while buying or investing in a property and become a smart buyer.
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Rakesh mishra
2017-01-19 02:08:48These things realy helpful to buy the property. thank you.
