Buying a dream home is probably the most exciting part of anyone’s life, the happiness that comes with the hopes of having your own piece of heaven on earth is unparalleled; having said this, the actual process of buying a plot or a home can be a daunting task, given the unbelievable Amount of paper work and legal hassles.
We hope this write-up will help you understand the intricacies of applying for loans and the right way to do it, thus reducing, to a certain extent, the overwhelming feeling of being bogged down by the pressure of procedure!
Let’s get started!
Knowing what to expect, especially if you’re a first-time homebuyer, will help you make solid decisions about your home purchase – The first step, as they say, is the hardest and arming yourself with the right knowledge and the right people should never be underestimated. Seek help from community organizations, your local government housing agencies, real estate agents, and loan officers who understand and are willing to work with prospective homebuyers like you; these are the kind of people whose job is to help you and make the right decisions!
It may seem tempting to jump into the decision of buying a home right away; but remember to check the depths of your pockets – because determining how much you can afford, based on your spending plan and comfort level will go a long way in easing the burden of returning loans. Talk to a loan officer to review your income and expenses, which can be used to determine the type and amount of mortgage loan you qualify for. Having a good credit history is also an important beginning step.
Educate yourself – Don’t fall for honey traps!
It is common sense that nothing in life is “free and easy” – and when it comes to home loans this knowledge will be your strongest weapon! Gather as much information as possible; talking to local authorities is the best way to go about doing this, because receiving reliable information will enable you to make the right choices throughout the loan process.
Beware of people who tell you that your credit problems will not affect your loan. If an Offer looks too good to be true – it probably is! Make sure you get everything in writing in the presence of a trusted lawyer.
It is wise to “shop around more”. Don’t get over excited at the first offer you receive (no matter how tempting it is!) – more often than not it so happens that comparing a loan offer with others may bring you extra peace of mind and a happier wallet!
Questions. Questions. Questions. – Ask them, all of them! We insist on this because, lets face it, buying property or owning a house is a once-in-a-lifetime opportunity for the majority of us (unless you are Donald Trump!) so do not even think that any question is “silly”. Find out everything there is to know about prepayment penalties, additional fees, re-sale value, terms and conditions of loan and mortgage, government rules on construction (in case of a “built-up” house), disclosures, fine prints et al.
Do not sign everything that is put in front of you! Definitely not before you have read and understood it thoroughly – if in doubt talk to your legal advisers. Beware of scams and the safest way to avoid this is to work with legitimate counsellors. Understand the total package before you take any decision.
Do your part the legal way! It would be hypocritical on your part if you were to only ask questions and not provide the truth – and it’s illegal too. Make sure all your documents are complete and correct. Do not ever entertain people who will offer to falsify your income information this could well mean the biggest blunder of your life. Do not sign documents which contain false or incomplete information – if someone offers to “fix the problem” or “fill in details later” say “NO”! Trust your instincts; if something feels “not right” do not sign until you seek expert legal advice.
Follow-ups and communication
Now that you have the basic in-depth information about the process and you know that the wheels of the system are in motion make sure you keep all communication lines open with your bank, real estate agent and everyone involved in the process.
Regular follow-ups should be staple – because hereon in your personal involvement in the progression will bear sweet fruit! Once you cross the pre-approval hurdle; which is the conditional commitment to lend you a specific amount of money for the purchase of your home, you will know just what you can afford to buy; then again it is entirely up to you to decide for yourself if you are comfortable with the amount offered.
For the final lap – it is suggested (strongly) that you speak with the residents who are actually living around the prospective property you wish to own; these people will be able to offer you first-hand information about the locality and the existing construction rules – and you never know you may have just made your ‘first-friends’ in a friendly neighbourhood!
Happy Home Hunting To You!