There is always some excitement that comes with being a first-time home buyer. But acquiring a home is a sensitive process, and if you are not well prepared, you can end up regretting it. Here are 5 common mistakes first-time home buyers make;
Inadequate location research
When we talk about the location we are not only speaking about the distance of the house from your workplace/town but also;
- The availability of social amenities such as schools, dispensaries,
- The security of that area. How far are the local authorities?
- The distance and performance of schools from your house
- The road whether its all weather
poor financial planning
Other than the purchase price of the house it is important to consider the following
- The closing costs such as stamp duty
- Moving cost
- Décor and interior design cost
- The monthly service charges
- Transport/fuel from where you live to where you work
Examining the full cost will help you budget for your finances and avoid unnecessary debts. Refer to our article on 3 simple ways to budget your finances
Consulting one lender
A mistake I’ve noticed most buyers make is consulting a lender they are used to. I will recommend consulting multiple lenders. Shop around for different rates, lender fees, and mortgage rates. If you are not sure where to start read our previous article on the best mortgage lenders in Kenya.
working with an illegitimate Developer
There are many conmen out there in the name of developers. How can you know if the developer you are working with is legitimate? Here is what you need to do
- Check for their track record- do they have previous projects?
- Visit the site – Inspect whether their houses exist or if they are just rendered, look for quality finishes
- Ask for a copy of the title deed and do a title search
- Do they have an operational office?
- Do they have an official website?
A good example of a credible company is Mintvilla housing which has not only sold over 100 houses but also has ready title deeds. Our offices are located in South B, Trance Towers Seventh floor.
Forgetting Future functionality
How do you see the future unfolding? Do you intend to have children? The number? If so, you ought to think about how many rooms there are. Are you retiring soon? two or three bedrooms is enough. Alternately, you might choose a home with a DSQ and rent the DSQ.
The bottom line
As a first-time home buyer, you need to think about not just the price of the house. Think about your future. Do your due diligence. Plan your finances and highlight any cost you would incur. For any financial advice kindly contact us on 0711082929/0708888222 or email us at [email protected]
