Buying a home is no easy feat; especially if you are doing it for the first time. Maintaining finances, dealing with nitty gritty details, and keeping paperwork in order can even make the most confident person doubt their abilities.

Purchasing a home is not like buying a commodity off the shelf, apart from tons and tons of research, a new homebuyer also has to understand how to navigate the real estate market before placing their hard earned money on a house.

There are a lot of fees associated with purchasing a new home, however, homebuyers often fail to take these things into consideration. From documents required to be presented to the bank for approval of a home loan to ensuring if you have enough money saved for downpayment, many things need to be in order before you can buy your new home.

The entire process may seem daunting, but worry not, in this article we attempt to list out the most five common problems that homebuyers tend to face along with their solutions to make your homebuying a whole lot easier.

Problem 1- Not Saving Enough

Most first time homebuyers are not aware that one cannot finance the entire cost of the house through loan. Lenders can finance upto 90% of the price of the house, but the remaining 10% has to be paid as a down payment. For eg : if a flat costs 80 Lakhs, then 8 lakhs has to be paid by the homebuyer as down payment.

Another problem faced by home buyers is not being aware of fluctuations in real estate prices, home loan rates. Having a thorough understanding of these elements before you start saving for your new home goes a long way.

Problem 2- Below Par CIBIL Score

Not just home buyers, but infact most people are not even aware of what a CIBIL score is, even though today we see most consumers preferring to use their credit cards and loans to achieve their dreams. The CIBIL score in these times is very important to track as it is one of the important factors that banks and lenders assess before passing your loan.

What is a CIBIL Score?

The CIBIL Score represents a consumer's credit rating. An individual's credit profile is written down as a three-digit numeric summary of their credit history. As part of this process, banks and lenders share information about a consumer's borrowing habits with CIBIL regularly (which can be found in the consumer's CIBIL Report).

Loan accounts and credit cards are considered for the Score, as are payment statuses, outstanding amounts, and days past due. The CIBL score ranges from 300 to 900 and consumers have a better chance of getting a credit card or loan approved if their score is closer to 900.

Being aware of your credit score is vital before you consider buying a home, especially if you plan to take a home loan.

Problem 3- Insufficient Research On Property Builder

More often than not, first time home buyers tend to finalise their new house just by looking at the interior and exterior of the proposed project. While, having the aesthetics in place is extremely important for your new home, knowing the quality of raw materials, home fittings, execution and ability to meet delivery timeline by the project builder is extremely important before finalising a project.

There has been a lot of instances where homebuyers have paid their booking amount, downpayment, stamp duty and registration charges before finding out the project builder is not that reliable. Even though, now, we have the Real Estate Regulation Act, 2016 (RERA) in place for addressing your redressals, doing through research on the background of the property builder will save you a lot of time.

Additionally, it is advisable to visit projects made by the same property builder in order to ensure the quality of the project

Problem 4- Not Choosing Real Estate Brokers Carefully

First-time buyers also have to deal with this issue. As a result of their urgency to close the deal, Most people don't do enough research before making a decision. Selecting a seasoned real estate agency will help you navigate the homebuying process in a smooth way. A good real estate broker will scour the market for homes that suit your requirements and guide you through the process of negotiation and closing. Through researching and reviews from friends, family and the internet will aid you further.

Dwello, helps homebuyers from the very first step to the end, even extending assistance post the handing over of your flat.

Problem 5- Unaware Of The Property's Appreciation Value

It is important to be aware of the appreciation value of the property that you are interested to purchase. Real Estate is considered as an asset and much like other assets it is important to be aware of how much your home is going to fetch you in the future. It is also important to be aware of the various other growth drivers like infrastructural developments that can increase or decrease your property value.