Buying a home, even for an experienced buyer, can be an overwhelming feeling. So a first-time buyer is naturally caught off guard when faced with various aspects and elements revolving around house purchase. But we are here to make things a little less stressful for you. Here is a list of a few things every first-time homebuyer must know.
Consider the area you are buying in
Rather than merely going in for looks, it is essential to pay attention to the location and neighbourhood of the house you have set your eyes on. It is always good to purchase in a high growth area where you witness potential for growth and consequent capital gain. Look into aspects, such as proximity to educational institutions, hospitals, malls, and connectivity to business locations.
Take a look at your finances
Understand where you stand concerning your financial status. Review your existing financial obligations such as insurance premiums and payment of other loans and take into account your monthly income. Work out how much you can put aside as EMI (Equated Monthly Instalment) if you have to apply for Home Loan. It is imperative to possess a healthy savings account so that paying for additional expenses such as car parking, registration, and clubhouse charges is not a problem. See if you can keep aside four to five EMIs as reserve funds in case of an emergency such as loss of a job.
Understand the various interest rate alternatives
Mostly, first-time house buyers are confused whether to go in for a fixed rate of interest or a floating rate of interest. In fixed rate of interest, the interest rate does not fluctuate along with market trends of the country, as it is true with a fluctuating rate of interest. Fixed floating home loans are also gaining immense popularity. In this case, the interest rate is fixed in the beginning years and then starts to fluctuate subsequently. It helps individuals plan their finances in a better way and safeguards against future fluctuations.
Take into account additional costs linked to home buying
A house deposit is not the only aspect you have to shell out money for; there are other upfront costs applicable too. There are costs such as the bank initiation fee, the attorney’s registration fee and a bond cancellation fee among others. In addition to this, take into account scalability of the home as well. After a certain period, the number of residents in a family generally goes up. Make sure you understand this and make your purchase accordingly.
Give importance to builder credibility
Before securing a Home Loan and purchasing a home, see that you look into builder credibility. Conduct research on the builder’s previous projects, the rate of appreciation in value, quality of construction, number of future projects that the developer has in the pipeline, and the present demand in the market. As a result, it helps you understand whether the builder is trustworthy or not.
Be prepared for the effects caused by delays
Delays are a common phenomenon with the emergence of high rise structures and community housing. Sticking to the stipulated delivery schedules can seem like a task for some builders. This is why it is essential to be prepared for such delays. Setting a little breathing space of around 90 to 120 days is always a good idea.
Keeping the necessary documentation ready
If you are a first-time buyer, documenting the acquisition of a home can be cumbersome. It is always best to consult a well experienced and resourceful legal professional about this. It helps you modify the needful to blend in with your specific needs and concerns if the need arises.
These are just a few tips to keep in mind if you are a first time home buyer. Remember, there are Different Types of Home Loans to suit your budget perfectly. So you can rest assured that you find the best Home Loan as well as the property of your dreams. You can also avail the recommendations of the financial experts at MyMoneyMantra who will help you find the best Home Loan option for your needs.
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.
Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers.