Possessing a house is a dream for many but translating it into reality includes diligence, hard work, and financial commitment. As a first-time home buyer, one needs to be extra careful with the financial planning and have an in-depth understanding of the processes involved.
Starting from a credit-linked subsidy under PMAY to GST rate cuts on a home loan, this is the ideal time to purchase a residential property.
So, if you are planning to purchase a home for the first time, you must have a good understanding of the budget, location, amenities, type of property, etc., and most importantly, how to avail a housing loan in India. If you have already decided to purchase a house, here are some useful tips that will help you make the right choice.
Top tips for first-time homebuyers
Follow the effective tips below before purchasing a house for the first time.
Before investing your money to buy a house, you must fix your budget. Usually, the prices of houses depend on the type of property and location, and it is essential to decide your budget.
One way to get a clear idea about your budget is by using a home loan eligibility calculator. Using this calculator, you can understand the maximum amount you are eligible for, monthly repayments against a certain home loan interest rate, and a tenor. Moreover, it is also important to consider your current monthly liabilities before investing.
This particular factor will depend on the usability of the property. In addition, you need to consider factors like the property size, amenities, and likes. Moreover, it is essential to consider the purpose of buying a home. For example, the specifications will be different for residential property from a commercial property.
When purchasing a house, it is important to consider the right location. Important factors like work location, access to public transport, nearness to metro or train stations are some of the crucial factors that need to be considered. Other factors like good neighborhoods and better civic amenities also come into play. Moreover, a budget will play a pivotal role here as home prices differ depending on the location. In this regard, intending homebuyers can also consider opting for a housing loan in India for purchasing a property
- Check the amenities and builder
Besides, it is also essential to decide on the required amenities. Nowadays, apartments and complexes have provisions for gyms, swimming pools, clubs, etc. For example, if you own a car, you would need a garage or a parking lot. It is very important to select the amenities consciously as these factors will add up to the entire cost of your home and will eventually decide your home loan EMI.
Since purchasing a home with a housing loan in India is a big financial commitment, verifying the builder’s credentials is important. In addition, individuals must check the track record of the builder and know about his project delivery timings.
- Choose the right funding option
Since a home is a high-end purchase, depleting the savings is not a wise idea. In this case, individuals can opt for a home loan to cover the cost of their dream property. However, it is a good idea to compare home loan interest rates and features offered by financial lenders. But before that, one needs to meet the essential home loan eligibility criteria to avail the benefits associated with the credit.
Apart from this, one needs to know how to apply for a home loan and the important factors that need to be considered, like additional charges, terms, etc. Furthermore, intended borrowers can enjoy pre-approved offers extended by reputed housing finance companies. These offers are available on a host of other financial products like loan against property, home loans, etc. Such offers accelerate and simplify the loan application process.
Thus, choosing the right housing loan in India and purchasing a house can be daunting for first-time homebuyers. However, following these tips, borrowers can plan their finances properly and make an informed decision.