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Know the Challenges Faced by First-time Homebuyers

Buying a home requires careful planning and consideration. You must look for the best property to suit your family’s needs, choose the right lender to apply for a home loan, etc. Not to forget you must have to make financial arrangements for making down payment and deal with several paper works. From choosing the right property to getting your loan approved and finally moving into the new house, you may face several challenges along the way.

Let us look at some of the common problems that first-time home buyers face.

  • Hire a real estate agent or not

When you decide to purchase a house, the immediate challenge you may face is to decide whether you want to hire a real estate agent or not. The agent may help you find the best property that suits your needs and budget. However, you must pay a brokerage fee to them, and this will increase your overall cost.

Alternatively, you can search for the best properties in any location of your choice online. But this would mean dedicating your time and energy to the task and you may have to do the negotiations with the builder/seller by yourself.

  • Inadequate funds for down payment

One of the biggest challenges that most first-time home buyers face is having enough savings to pay the down payment. Generally, the lenders in India don’t cover the full property cost; they approve a maximum of 80% of the property’s value as loan. You must pay the remaining amount from your pocket.

So, make sure that you make necessary arrangements for the funds beforehand so that you avoid delay in the home loan application process.

  • Finding the right lender

This is another major hindrance that first-time home buyers face. Most people rely on getting a home loan to get the desired funds for buying the home of their choice. Today, many financial organisations offer home loans at attractive interest rates. But this does not mean that you get the loan for cheap. Generally, the lenders that have low interest on housing loans have several hidden charges, which would increase your overall loan cost.

Compare the offers from different lenders, and check the interest rate, benefits offered, and other charges levied, before taking the final decision.

  • Verifying property papers

When you buy any type of real estate, be it a villa, an apartment, or a plot, you would want to be sure that the property has clear title and is not involved in any legal dispute. You need to be aware of the various papers that you must obtain and verifying them all. As a first-time buyer, all this can be overwhelming.

To avoid the hassles of going through the property check and documents verification yourself, it is advisable to work with an expert who can guide through all the legal process. Although their services may be an additional expense, it will be worth spending as you can be sure that the property is safe to invest in.

Final Word

Thus, from choosing the right property to finding the right lender, you may have many hassles while you buy a home. But it is vital that you don’t stress and focus on finding a solution. Happy home buying.

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