It is the dream of every person to purchase their first home. As being able to purchase your own house reflects a sense of financial stability, one has to have enough savings put aside. As you will be using hard-earned money, it is important to remember certain things before purchasing any house. That way you will be able to fully enjoy your purchase. Here are things you need to look out before purchasing a house
Make sure to check the specifications of the property you are buying
It is important that you check the fine print of your contract before signing it. Make sure that the actual specs of your property will be indicated in details, such as the exact lot/floor area in square meters, the description of the apartment or piece of land and the complete address. Make sure to check the complete details of the title as well such as the title number. Make sure that you verify with the government agency handling the registration of deeds. That way you will know whether the title of the property you are purchasing is clean.
Check details of any initial down payments
One of the initial steps to purchasing any piece of property would be putting aside money for your reservation. Most developers, if not all, require a reservation fee or earnest money as a sign of your goodwill to complete the transaction. This amount would differ from the initial down payment which would be about 20% of the market value for the property. Usually non-refundable, the reservation fee comes with a deadline. Should you fail to pay this on time, the contract is be forfeited. In the same manner, should you fail to make the initial down payment, then the reservation fee will be forfeited as well. So make sure that you get all the details and schedules of the initial payments so you can see to it that you make good on them.
Be diligent with the schedule of payments
Before signing the contract, make sure to check the schedule of payments. Usually done on a monthly basis, the repayments are usually given in a form of post dated cheques. So make sure that all these documents will be ready before you fully commit to purchasing the property. Also make sure that you assess your financial situation as the repayments can go on for as long as five years. Should you foresee any change in your income, then you might want to postpone the purchase of your property.
Make sure to note any penalty charges
Similar to credit cards, the monthly repayments have to be paid on or before the due date. Should you fail to comply with the deadlines for the monthly repayments, there will be corresponding penalty charges. Although they might seem like small amounts, they will come out to a sizable sum once you add up everything. So make sure that you are financially capable of settling all your bills on time.
Be prepared to pay taxes and incidental costs
When it comes to purchasing a house, earnest money, initial down payments and monthly repayments are not the only things you need to take into consideration. Government bodies require that taxes be paid in full before they can transfer the title to your possession. Moreover there are annual property taxes that need to be settled. On top of this, properties need to be maintained as they are susceptible to wear and tear over time. This is where incidental costs come in. All these things cost money. Therefore you need to be prepared for all these expenses before purchasing any property.
Be particular with the contract you sign
Before you sign any contract, it is important that you have everything checked properly. Verify the title to make sure that there are no problems with it. Moreover do a background check on the seller to make sure that he or she is indeed the true and authorized person to sell the property. Lastly make sure that the property you buy has never been sold or transferred to any third party. Otherwise you might have a problem transferring the title to your name. When signing the contract, make sure that the seller of the property is present. Should the seller be unavailable, then a Special Power of Attorney should be provided. To make sure that everything is above board, it is good to consult with a lawyer, especially if you are purchasing a property from a direct seller and not through a developer.
Purchasing a house is not a small thing. Therefore you must do everything to ensure that the sale is legal and true. That way your hard-earned money will not go to waste.
Featured and 1st image by Ddpavumba / FreeDigitalPhotos.net
2nd image by Ddpavumba / FreeDigitalPhotos.net
3rd image by Jeroen van Oostrom / FreeDigitalPhotos.net