Buget101: Buying home?
The pitfalls to avoid while purchasing / sale of a property
Your home well maybe one of the largest purchases that you may have made. It is not unusual for loans to run for 25 years or more because the large sums involved in the house purchases. It is a little wonder that there are always hassles while moving your possessions and establishing yourself in a new area, and buying house is one of the most stressful activities that you can undertake. Most people do not buy and sell property at all. It is difficult to build and expertise. There are some common pitfalls to watch out that can trap unsuspecting purchases or vendors.
Delay in purchasing
It is worth getting your market agreed upon in principle and your solicitor on standby before starting house hunting. Once you have found the property of your dreams you need to move fast. Any delay in the completion of the transaction can make the seller nervous.
Is a transaction stalls you may find that you are going to buy another purchaser? This is only possible in India. The process of buying and selling property elsewhere is different due to the way in which contracts are finalized.
Strict mortgages conditions
After the final crisis of the recent years banks and building societies have become much more wary about lending money. Kundan work white relaxed about the legal documents for mortgage us being drawn up on the purchaser solicitor. However lenders are now placing restrictions around with solicitors can act on their behalf.
This can add an extra layer of complication of delay in purchasing process. Bad realty market conditions may also mean that some of the potential purchases would have to be previously offered alone might be, a good reason why they would not be able to get finance.
It can be extremely disappointing for many companies to find that a prospective purchaser can get finance in place particularly if the seller has found a new property and is anxious to move.
Exit fees
If you have an existing not to age and are looking to move to another property you will have to redeem your current mortgage and take a new one.
If you are tied to a fixed great are kept mortgage you may find that you are accept fees that you pay on the top of that amount remains outstanding. Phasor form of penalty if you are moving to a new mortgage with the same lender, you may find the bank or building society prepared to waive the exit fee on your existing mortgage.
Negative equity
If the amount due on your mortgage exceeds the value of the property you are in negative equity situation. Even if you can find a buyer you will not be able to pay off your mortgage without using other fund such a savings. Negative equity situations arises when property market falls. People who purchase property with small deposits and lot market is can find it minor fluctuation in property market can lead to negative equity arising.
Good luck investing. All the best.
