Buying or constructing your dream home is a wonderful feeling because you finally own a house which you have wanted for a long time. Given the huge expenses involved in buying property, owning your dream home is a big deal. You work hard and save money for a long period of time before you are able to afford the house. Even then you have to resort to a home loan to be able to finance your dream home. While buying a home and availing a home loan you should be careful. There are some mistakes which, if you make, would cost you your dream home and you would lose the home’s possession. Do you know what these mistakes are? Let’s find out –
- Not researching the builder
Buying a home should be done after careful consideration. Your home is your asset and it is a long-term investment. As such you should choose a home with utmost care. Researching the builder and the developer is important. They should be reputable to ensure that the property would be well-built and you would have possession of the property when promised. Also, choosing a reputed builder would also ensure that the property would not have any legal compliance issues.
- Not having the complete documents
Documentation is an important part of owning a home. There is a lot of paperwork involved. If any of the documents are missing your ownership might come under the scanner. So, make sure you have all the legal documents of your home handy. You should preserve the documents carefully so that they can be easily accessible when you need them.
- Choosing a bad locality
Locality is everything when buying a home. The ideal locality is the one where you have all the basic amenities within your reach and it should be well connected with the different parts of the city. Arranging conveyance from the locality should also be easy so that convening from your home does not involve any hassles. If you choose a bad locality, there would be a problem with conveyance and you might eventually have to bid goodbye to your dream house and shift to another suitable location in the near future.
- Availing a high loan
When availing a home loan, affordability should always be taken into consideration. If you avail a very high home loan repaying it would be a problem and you can fall in a debt trap. You should calculate the potential EMIs of the loan before availing it and figure out whether they would be affordable or not. There are online EMI calculators which make calculating the potential EMIs easy. You can also compare the EMIs of different lenders and choose a lender charging the lowest rate of interest so that the loan becomes affordable.
- Defaulting on the loan
If you default in repayments on the loan for a long time, your dream home would be repossessed by the lender to realize the unpaid loan and you would lose your home. So, avoid repayment defaults to retain the ownership of your home.