Many of us dream of buying a house for years or sometimes even decades before starting with the execution and buying process journey. We already start thinking about how many bedrooms we want, how the living area would look, what the locality should be like, and how we will style the interiors.
And especially when it comes to buying our first dream abode, we often get carried away and make our decisions from the heart. But it’s always recommended to take the mind along. Navigating through the process of buying a house is one of the most critical decisions in a person’s life; it is a Milestone achievement that requires extensive research, due diligence, and a lot of documentation. From figuring out your finances to why you should consider a realtor, this capital-intensive investment requires a thoughtful decision instead of an emotional plunge.
So, to make sure that your most prominent dream doesn’t turn into a nightmare and you adhere to a proper procedure, let us walk you through the process with a few home buying tips to help you make a final call responsibly.
Handy Tips To Consider Before Buying A House
1. Stable Source of Income
Buying a house requires endless planning, considering your critical financial obligations, low budget house plan, and whatnot. In the current situation, after the Covid-19 crisis, people are struggling to pay their EMIs as most people have either lost their jobs or face pay-cuts. So, in case you’re planning to buying a house now, then make sure you’ve sufficient funds to repay your loan dues without creating any disruption for yourself later.
2. Background Check of Realtor/Agent
In this world of Ponzi schemes, people often fall prey to sellers leading to a risky deal where the homebuyer loses his life savings in a blink of an eye. Before you get attracted to such lucrative offers by the realtors or property agents, it is imperative to get all the essential house information and do a background check of the developer through whom you intend to purchase the property. There have been many cases where the homebuyer had to let go of their dream house, as it was constructed on agricultural land or the land was disputed land.
So, to be sure that you don’t get yourself trapped in such a bogus deal, especially when you are a first time home buyer. You can visit the Ministry of Corporate Affairs website and check the records of the realtor and project delivery details to be sure that your money is in the right hands.
3. Ready To Move In Properties
The real estate industry in India, like many other industries, is already trying to recover from the Covid-19 shock. In this situation, it wouldn’t be a safe decision to buy a property and then wait for a long time to get its possession. Even though the Real Estate (Regulation and Development) Act is in place, but seeing such an unprecedented financial situation amid the pandemic, one should be prepared for any challenging situation. A safer bet would be to consider a ready-to-move-in property instead of an under-construction property in such a condition.
4. Avoid Taking A Personal Loan For Down Payment
While buying your future crib on EMIs, you still need to make a down payment, and it is wiser not to take any personal loan to pay your down payment. Personal loans are comparatively expensive and don’t qualify for any tax benefits. And the amount of two EMIs on a personal loan and home loan can result in a financial burden for the borrower. Instead, you can opt to fund your down payment using investments in mutual funds or provident funds.
5. Take Stock of Your Finances
The higher, the better. Most banks consider a borrower’s credit score before providing a home loan. A good credit score (usually 700 – 800) results in lower rates, depending on a few other conditions. A credit score plays a significant role. It may result in an interest rate difference of approximately 1% p.a. Even a slight difference in the interest rate can lead to a massive difference in your overall loan amount.
So, take our advice and make sure that you maintain it at a higher level to get a loan to buy a house at the lowest rate possible.
6. Now or Later?
Another essential thing is to decide whether you should buy a house now or later, especially when you’re a first time home buyer. Seeing the current real estate market situation in India, you may get a good deal, including some great discounts on prime location properties. So, if you’re financially stable or at least have a steady income to afford to buy a house without disturbing your contingency savings, then investing in property now is a good idea. However, going a little extra mile and putting efforts into researching to make a wiser decision would still be required.
7. Check If You’re Eligible For A Home Loan
Being a capital-intensive investment, purchasing a house requires a massive amount of money and mostly requires applying for a home loan to buy a house. It’s always better to check your home loan eligibility before making any purchase decision. The home loan eligibility majorly depends on your occupation, income, loan amount, and the number of dependants.
If you’re a first-time homebuyer and not aware of the home loan process, you can check your eligibility online or by visiting a bank.
8. Location Of The Property
Another important deciding factor to consider while buying a house is its location. You need to ensure that the property you choose has a well-established social infrastructure, including markets nearby, schools, hospitals, police stations, and other essential amenities within the range. Do not get persuaded by the agent who tells you that the location will soon have every possible facility. Don’t fall for the futuristic possibilities because you plan to shift into the property today, not in the next 5-10 years from now.
Now that you’ve got a handy guide with all the essential home buying tips with you, it’s time to find the appropriate space to call it your own and transform it from a house to home.