Are you a first time home buyer with many questions popping up in your mind regarding credit score, loan eligibility, financial requirements etc.? Then follow this simple six-step guide to buy a dream home which falls in your budget:
- Check your Credit score
First and the foremost step for a first time home buyer is to make sure that the credit score must be healthy. If the credit history is more than what is required (750-900), then one can easily impress upon any financial institution or banks to get a home loan. Maintaining a good credit history is a must for first time home buyer.
- EMI and down payment
Apart from a good credit score, there are several other parameters that are required to make a final decision. These are:
- Combined Annual income
- Other Monthly obligations
- Cash for Down Payment
With a plethora of home loan options available in the market, it can get a bit confusing and tedious to decide what will be optimal for you. So, a first time home buyer must do a proper research before opting for a loan.
- Prepare a wish list
After figuring out your financial backings and requirements, now it’s time to prepare a wish list of your dream home in order of priority. These are:
- Property size, type, and configuration
- Fully furnished/ semi-furnished
- Safe, quiet neighborhood
- Close to the city, work, school, and other basic amenities/facilities
- Good investment with excellent resale potential
- Affordable property taxes
- Finished basement for office or guest room
- No threat of commercial encroachment
- Close to public transportation
By getting this done, a home buyer gets a more positive result as there are many real estate agents present in the market which can easily make a fool of you.
- The affordability Factor
After finalizing a property, now it’s time to check whether it falls in your pocket or not i.e. the affordability factor. This is a big question which an individual has to ask themselves, to make an honest decision which should not become a burden in later stages. There are many real estate agents in the market which helps homebuyer in solving this problem too by giving a proper financial consultation. They provide end-to-end financial advice and also recommend some of the leading banks who can provide loan with attractive offers.
- Financial assessment
Do proper calculations beforehand as it is the best way to manage monthly installments and other financial spent. For example: Take your monthly income before taxes, including all sources, and divide it into all the sections where you have to invest and pay like bills, payments, etc. The result- you will get a proper amount that you can afford to pay on a monthly basis for the home loan.
- Property taxes
Now with all the above points done, you are all set to buy a home. But have you taken into account the property tax? Yes, every homeowner is liable to pay property tax to the local authorities under whom the land is registered. Pay your property tax on time and check for any rebates you can avail that are available, for example, for senior citizens, women, military personnel, etc.
So, with a little bit of research and a proper guidance, buying a home can turn out to be one of the most beautiful experiences of life especially for a first time home buyer.