Buying a house is the biggest financial investment and the most expensive purchase that you can make. This is the place where you can settle down your roots and feel the warmth and security. Hence, you want to make everything go as smooth as possible without any hitches.
Although buying a house is the biggest achievement, spending all the hard earned money at once is never a good option. You must be prepared for the events that may happen in the future. You should have enough savings for all the basic necessities as well as any and all emergencies.
While you are into the process of making a contract with the dealer for your new home, you must be aware of the ‘ifs’ of the contract. These conditions are helpful for both the buyer and the seller in case anything goes south. It protects the buyer from any mishappenings that could go wrong in the transactions. The conditions that are included in the process are:
Appraisement: You don’t want to pay a fortune for the house and neither anyone would do it. It will help you to know the real market value of the accommodation before the deal closes. If the appraised value of the house is less than the sale price, then the buyer can either negotiate for a lower price with the dealer or entirely back out of the contract. You must know that no lender would allow a loan that is more than the cost of your house.
Inspection & Repairs: You definitely don’t want to pay for a house that looks good from the outside but needs thousands of rupees of repair work on the inside. A buyer has the right to have a professional (inspection officer), check the interiors for any major problems. In case if anything turns up unexpected during the inspection like damage to ceilings, leakage, cracks, then you can ask the dealer to repair it, lower the price or cancel the contract altogether. Do not try to skip this step in the first place otherwise, later it may cost you something you don’t want to pay.
Finance: This is one of the pitfalls that everyone some or the other way fall in. The biggest part of the financing for most of us is to save up for the down payment which becomes a huge hurdle for the buyers. You must do a financial assessment in order to ensure that your funds don’t fall short at the last minute. You should be cleared of all debts and EMIs because at the end of the day these things will affect your Credit Score which is an important factor that lenders consider over your application of home loan.
The final walkthrough: One of the final steps into the process is to make sure that there’s hasn’t been any serious damage to the house since the contract started. Check all the repairs that you asked the dealer to agree upon. In case you find something is shady then you do have a chance to back out.
These conditions and others protect the buyer from paying too much for a house that has major issues or buying a house with financial pitfalls. Try to ensure that everything is as per the standards and if that lives up to your expectations then you’ll be a proud homeowner in no time.