CHALLENGES FACED BY FIRST TIME HOME BUYERS

Home is the safest place one can go to. But is it as easy to get that safest roof above your head? Can a person buy a home within days or with minimal planning? It is a big no. One has to wait for a long time with tremendous patience and must save in a disciplined manner to buy a house without any hassle. Here are the top 3 challenges and difficulties you may face as a first-time home buyer. Know your challenge before and face it with higher confidence. Buy your own house and live your dreams in your dream house.

NO/POOR CREDIT HISTORY:

When it comes to home loans, checking a person's credit history is significant because the bank only understands your credit managing capacity with your credit history. If you belong to the category where you have never applied for a credit card or loan or are beginning your credit journey just now, then you probably don't have a credit history at all. So, build a good credit history before applying for a home loan.?

Here is a straightforward tip for you to build a good credit history:

• Please apply for a secured credit card, use it regularly, keep in mind the balance-to-limit ratio, pay your credit bills on time, and then change it to an unsecured credit card after a year.
• You might have taken educational loans to fund your higher education as a student. Payback your education loan promptly to build a good credit score and gain your lender's confidence while borrowing home loans.?
• Maintain a credit score of 620 or higher to reduce the chances of getting rejected.?

BUDGETING YOUR HOME:

First time home buyers find it burdensome to budget for their first home. Know your current and future salary. If you are expecting any hike in your current job or entering some other company that offers you a better salary, do consider it. Calculate your monthly expenses and disposable income. If you plan for a child or foresee any medical emergency, count that in before fixing a budget for your housing expenses. If you can afford the entire sum of money, you can go ahead with looking for the house of your choice.

If you wish to take a home loan, never start your buying process unless you have 30% of your purchase price. Most people will have saved up to 20%, thinking that is the maximum down payment. Along with the down payment, one has to pay for various closing charges like stamp duty, registration fees, inspection fees, escrow agent fees, real estate agent commissions, travelling expenses, interiors, furniture, etc. So, make a corpus fund of at least 30% to be on the safer side.?

FAKE PROPERTY OWNERS:

All your lifelong savings planning can go wasted within seconds if you buy a property from a fake owner. Before purchasing a property, check the various documents related to the property to know whether they truly own it. Some of the documents you must check before buying a house are:

• Sale deed- Proof of sale and transfer of ownership
• Mother deed- Legal document which has the records of previous owners.?
• Approval plan of your building if it is an under-construction property
• No objection certificate from the tehsildar to know that it is not an agricultural land
• Power of attorney
• Tax receipts

Don't restrict yourself from living your dreams because of these common challenges. Challenges are meant to be tackled. Keep facing and never stop until you buy your dream house. Don't wait to buy a home, instead, wait after buying a house. It will give you promising returns.?