Buying a home is a significant choice that should not be taken lightly. This is because even little errors at any level of the purchasing process can result in considerable time, effort, and financial losses. Fortunately, you can successfully purchase the ideal home by avoiding the following mistakes:
Failing to save up for the down payment
According to real estate experts, buyers should have at least 20% of the house’s asking price in cash. This way, they can build a substantial home equity, which will protect them against fluctuating property prices while allowing them to enjoy lower interest rates on their mortgage. Having enough equity also gives you the ability to quickly borrow a large amount of money when you get unexpected medical bills, need to pay a huge debt ASAP, or make a major purchase without using credit.
However, you shouldn’t pour all of your cash on hand into the down payment. Emptying your savings isn’t advisable since it will leave you with no funds to pay for post-purchase costs or cover any emergencies you might encounter. If your savings are just enough for a down payment, it might be wise to hold off on the property purchase until you can save up more.
Ignoring the property’s location
You’ll likely be living in your new home for several years, so you have to ensure that it’s located in an area that you’ll enjoy staying in. Otherwise, you’ll end up wasting your hard-earned cash on a property that makes you miserable and unhappy.
When selecting a community, consider its distance from your workplace. Ideally, your new home shouldn’t be too far from the office, allowing you to enjoy a short commute each day. You must also check how safe and secure the area is and pick a location with relatively low crime rates. Don’t forget to ask about future developments that are being planned for the city or municipality. Generally, you’ll want to buy a property in a place that has plenty of potential for real estate growth, although you do have to look for developments that might hurt the price of your home down the road.
If you have chosen the place you want to stay in, look for properties in the area that comply with your specifications. If you’ve decided to live in Kuala Lumpur, for example, look for modern condominiums like Warisan City View where you can live comfortably and have access to various facilities.
Buying the first house you fall in love with
It usually takes buyers more than a few tries to find the best possible property to buy. So, if you’ve seemingly found The One, don’t purchase it right away. Instead, save the listing in your browser and take the time to explore other properties. By comparing different homes and weighing the pros and cons of each, you’ll eventually find a property that ticks most (if not all) of your boxes and will provide you with great value for money.
Skipping the home inspection process
Most mortgage providers will require you to have a property inspected before you complete the purchase. However, don’t get the basic inspection package just to comply with your lender’s requirements; instead, ask for in-depth house and pest inspections to be done on the property. By having an expert do a thorough inspection on the house you’re planning to buy, you’ll find out if it has major structural, electrical, or plumbing issues as well as other problems that require expensive and complicated repairs. This, in turn, will help you avoid purchasing a money pit and wasting tonnes of money down the road.
Finding the right home to buy isn’t always easy. Fortunately, by avoiding these mistakes, you’ll make the property purchase process less difficult and you’ll successfully find the best possible home for yourself and your family.
