Are you considering to purchase your own house? Is it your first time buying a house? If your answer is yes, then you must read on! Here we will provide you with some important things that you must consider before taking the plunge.
Buying your own home for the first time can be quite a tiring and overwhelming experience of your life. It is quite a landmark in your independent life to actually own a house. Thus, you would want to be very careful and cautious while taking such a big decision. You will have to over think and analyze various aspects. So if you are planning to buy a house in India for the first time, here are 10 things you need to check that may help you in making a better and informed decision:
1 . Purpose:
What is your purpose behind buying the house is one of the first things you need to decide. Determine whether you wish to live in it or you simply wish to make an investment by buying it. It will help you in deciding on the locality, how big or small you want it to be and the amount of loan you would be requiring, etc.
What is your budget for buying the house is very vital as it will help in narrowing down the prospects. Budget will also influence the region in which you may find the house, its size and amenities, whether you wish to buy an apartment or a house from ground to terrace, etc. It is always good to fine tune your financial planning before you decide on something so big.
What is the right time to buy the house is another important factor. Finance experts would always advise you to buy a house when real estate prices are low and the interest rates are quite reasonable. It will make the house more affordable for you as you will be paying a reasonable EMI and the overall deal will be beneficial.
4. Real Estate Agent:
Since it is your first time, you may not be well aware of the market conditions. The guidance of a good real estate agent can prove to be very beneficial. You can bank on their knowledge and expertise to make a right decision.
5. Loan to Value:
Deciding on the loan to value for your house loan is also very crucial. Loan to value is basically the size of your loan which is generally 80%-85% of the total cost of the house you are buying. However, it is also influenced by your loan eligibility.
6. Loan Eligibility:
To know your loan eligibility, you can check your credit or CIBIL score. CIBIL score provides the bank with a glimpse into your past credit history. Every bank will consider your credit score before approving your home loan application. If you have a good credit score, you are likely to be approved right away. On the other hand, bad credit history, unpaid loans, payment defaults, debt, etc. will ruin your chances of availing the loan.
7. Right Lender:
It is important to find the right lender for the loan. Compare various loan programs offered by different banks, their interest rates, etc. Choose the one you find most suitable. Ensure that the loan plan allows you to make repayments easily. Take your time in selecting the right lender as it is a huge step.
8. Legal Contract:
Since you are taking a big decision and investing a lot of your saving in buying a house, you need to ensure that it’s secure. Do not get duped. While purchasing the house, make sure that you and the one from whom you are buying sign a legal contract that will prove the deal.
When you are buying a house, you will find some that are so very appropriate in terms of your requirement but the price is a little over your budget. Apply your negotiation skills. Quote your offer and try convincing the seller.
10. Condition of the House:
When purchasing the house, evaluate its condition. Whether you need to get it remodeled or not is essential as it will add to your budget. This can also influence the place you may wish to buy.
We hope that you keep all the above mentioned points in your consideration before you seal the deal for your dream home. Have a safe purchase!