10 Mistakes First-Time Homebuyers Often Make

First-time house buyers often make mistakes such as underestimating their financial readiness, failing to check their credit bureau score, overlooking hidden costs (transfer fees, utility meter deposits, decoration expenses), and rushing into decisions without thoroughly inspecting the location or structural integrity. These errors can lead to excessive debt or future problems with the property.

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10 Common Mistakes Made by First-Time housebuyers:

1. Miscalculating the budget: Borrowing beyond one's means by failing to account for expenses other than monthly installments.
2. Not checking the credit bureau: Having bad debt or a history of late payments, resulting in loan rejection.
3. Overlooking hidden costs: Transfer fees, mortgage registration fees, common area fees, and utility meter deposits.
4. Falling for the "low down payment" trap: Being swayed by promotions that ultimately lead to failing to secure the final loan amount.
5. Not comparing bank loans: Choosing the first bank contacted without considering the average interest rate over three years.
6. Not inspecting the house thoroughly: Failing to hire an expert to check the structure, roof, and plumbing/electrical systems before the transfer.
7. Location not suited to lifestyle: Not checking traffic conditions, public utilities, or long-term flood risks.
8. Not studying the Sales and Purchase Agreement: Signing the contract without reading the details regarding the forfeiture of the deposit.
9. Co-borrowing without a plan: Not calculating the risks involved if the co-borrower becomes unable to continue making payments.
10. Incurring new debt while waiting for the transfer: Buying a car or using credit cards, which reduces the available loan limit.

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Advice: Assess your financial readiness at least 6–12 months in advance and avoid incurring new debt before the property transfer is complete.