7 Truths No One Tells You About Buying a House
A mortgage is a necessity of the modern-day world. Be it a car, a house or a luxury item in your home that you crave, a loan facilitates the acquisition or fulfillment of many desires. A house is one of the primary requirements as well as a dream for most of the people in our country. Most people want to free themselves from the recurring cycle of house rent and constant moving. A rented house offers more stress than relief. You cannot decorate it in the way you want; the landlord defines a set of rules that are mandatory to follow. Therefore it is advisable to pay an EMI (Equated Monthly Instalment) regularly instead of the rent. It does sound like a good option, but there are things that nobody will tell you when you finally decide to take a housing loan.
- You Need to be a Wise Credit Seeker
The first thing that you should understand is that when you Apply for a HomeLoan; choose the loan provider very cautiously. Analyse the market trends, know about the changes in policies and compare the rate of interest, processing charges, and other expenses before you put in your application. The loan provider will also evaluate your capacity for the repayment of loan; still, you should ensure that you have a back-up for any additional expenses which may crop up later. The bank or finance company will give you a share of the total cost involved in buying the house. This percentage may go as high as 80% but rest 20% you will have to manage on your own. If your credit score is not good, this percentage may also go down. This is one bitter truth that the extra cost, be it for registration of the property or transfer of other documents; you need to be financially prepared for that. Insurance, taxes or utilities may cost you much above than your anticipated budget.
- Paperwork
Most banks and finance companies offer help in getting the loan sanctioned, but it is a long journey towards the attainment of a goal. Being a homeowner is a proud thing. However, you need to prepare yourself for the phone calls, coordination, and the bulk of papers to read and understand.
There are finance providers who do not clarify the points which may prove to be unfavorable for you. Though such people are very few, but prevention is better than cure. So, you better put up your glasses and pick up a pen, and start reading the documents.
- The Quest for the Right House
You do not buy a house every day. It is a once in a lifetime achievement that not everyone makes. Housing loans have simplified the things a lot, but eventually finding your dream home remains your responsibility. You need it to be connected to a school, a market, and a hospital, and yes, you need it to fit in your budget. It is not as simple as it sounds. Looking for a perfect place where you feel – ‘at home’ is not an easy task. You will search online as well as offline; will go around for a trip with everyone who tells you that an apartment or a house is available for sale – it may be a property dealer, a broker or a friend of yours. The chances of finding the right home are themselves very few, you got to make certain adjustments, and then if the idea of the society to serve all your criteria comes to your mind, it gets even more difficult.
- Making Changes Thereafter
When you finalise the house, there might be things that you wish to change –your old furniture or curtains and even the kitchen drawers or chimneys. Stay prepared for these expenses as either you will have to take another loan for that or pay for it from your savings. The repairs can be, however, made once you move into the house.
- Settling-in
A new house may not feel like home for the initial days, and it may also take months to settle down properly into it. The place is new and so is locality, you do not know your neighbors and the nearest market. It takes a longer time than anticipated to be ‘at home’ finally.
- The Scary Empty House
Though buying a house is a dream, but most of the people who live in the rented house keep the furniture minimum, so they do not suffer when moving to another place. When you move to your own home, which is generally more spacious than the one you rented, there is a reasonable probability of you living in an empty house for a while.
- The Never-ending Turmoil
Be it an old house or new; pests, bugs, water drainage, along with others can be issues you need to address regularly. The new home will not look picture perfect very soon. It will require the magic of your hands to be the dream house you desired.
Also Read: 10 Interesting Home Improvement Ideas and How to Fund Them
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