Apartments aren’t cheap and once you have bought it, you are stuck with it as you have invested in it. There are many people who end up buying apartments without any kind of research or background check and they are the ones who end up regretting later for buying it. Therefore, to ensure that you don’t make the same mistake, here are five of the most common pitfalls that you should most definitely avoid when you are buying an apartment:
- Not Having a Clear Budget:
A clear budget is one of the most important things to have while buying luxury apartments in Kochi. This budget isn’t what you can repay after taking a loan, but how much money you can spend. Banks won’t tell you the real amount that you can easily spend. The loan agents would tell you what is profitable for them. List all your monthly expenses, which include the rent, loan payments, credit cards, savings, insurances etc. Now subtract this money from the money you get to take home and you can easily decide how much you can afford to spend on a new apartment.
- Not Getting Mortgage Qualifications before Making an Offer:
You should take a pre-approved loan before you put down an offer for the home. Each and every loan has different requirements and you should have all such information. The money lent by the bank should match the offer that you make for the apartment or else there could be a problem later. It is also possible that if your credit score decreases or becomes poor, the bank might reject your loan and you would have to forfeit a whole lot of money.
- Not Considering the Hidden or Added Costs:
Many apartment purchases aren’t as simple as they look. A whole lot of things are to be considered. Moving from rent payments to mortgage payments isn’t that simple. A lot of hidden and added costs are involved like home-owners association fee, property taxes, insurance of home owners and closing costs. Apartment buyers do have all the big costs in their mind, but the hidden costs are generally not thought of. These costs end up getting added to your expenditure later. Therefore, you should figure out all hidden costs like maintenance costs and add them to the monthly mortgage that you are planning to pay to get the exact amount of what the apartment would cost you.
- Not Paying the Down Payment:
Never skip the down payment because if you skip the down payment, you would be stuck with a higher mortgage payment and it keeps getting higher as the interest rate gets higher. This would increase your total expenses drastically and you obviously would not want that to happen.
- Not Doing Interior Inspection:
Make it a point to inspect the entire apartment before you purchase it. There are various problems that can be buried in the pretty exterior of the apartment. Therefore, you have to check out the actual state of the flat or else you might have to shell out for unexpected repairs, which would increase the cost of the apartment.
If you avoid these common mistakes, you can be assured that you would get the best possible apartment at the best possible rate with no hidden or extra problem attached with it.