By Anurag Goel, Director, Goel Ganga Developments
The acquisition of a home often represents the most significant investment in an individual's lifetime. It is crucial not only to locate an appropriate area but also to secure the right mortgage. Discovering an affordable residence can prove challenging due to limited inventory in local markets and the escalating prices of homes nationwide. Amidst the elation of purchasing a home and the stress associated with its financial implications, first-time buyers are susceptible to committing errors.
Presented below are five prevalent mistakes made by first-time buyers and how to steer clear of them.
Neglecting to establish a budget
The foremost mistake made by potential homebuyers is the absence of a well-defined plan for the purchase of a home. The primary consideration lies in assessing your financial capacity. If you remain unaware of the amount you can reasonably allocate towards a house, you may find yourself in significant distress later on, particularly if your dwelling consumes the entirety of your earnings. It all commences with a budget that is formulated after accounting for other major expenses, especially if you bear the burden of additional loans.
Insufficient research
Research serves as a valuable tool for comprehending the array of projects available in the market. The optimal approach to embark upon this quest is to conduct thorough research. As, we Known Goel Ganga Development Pune Identifying the most suitable locality to suit your needs, estimating prices within that area, gaining a general understanding of reputable builders, and acquainting yourself with the fundamentals of interior design and construction will considerably safeguard newcomers from making novice errors.
Failure to compare home loans
While the interest rate remains a critical consideration when selecting a lender, numerous other factors warrant attention. Given that a significant portion of your working life will be dedicated to repaying this debt, it is essential to choose a home loan product after meticulous research and due diligence.
Neglecting loan eligibility verification
Pursuing a purchase without a clear understanding of one's financial status is ill-advised. A standard acquisition necessitates a down payment ranging from 10 to 25 percent of the property's actual value, with the remaining amount obtained through loans from financial institutions. As, we Know Anurag Goel Ganga Pune Acquiring pre-approval for a loan is a prudent step to determine your eligibility. This will offer insights into your financial capacity and facilitate your home search.
Lack of awareness regarding tax benefits
Only a minority of individuals are well-informed about the taxes they must settle during the home acquisition process, as well as the potential rebates available under various sections of the Income Tax Act. Neglecting tax payments associated with your home purchase could be deemed as tax evasion, while failure to correctly claim rebates may result in financial losses.
