Buying a house for the first time can be a nerve-wracking experience for many. There may be many questions clouding your mind, right from how to choose a home best suited for your needs to which lender to approach for a home loan. You have to be very careful while taking the plunge, because a new home not only means a hefty investment for a long duration, but also costs you ease of mind if you aren’t sure of your move.
Here are 20 home buying tips for first time home buyers:
- Your new house is not just a place you would be living in, but is also an investment. Therefore, when planning a home purchase, make sure you know the long-term implications of your move.
- Include the total home loan and maintenance costs of a property in your monthly budget. If you like a house but the monthly costs, when added to all your other fixed expenses, is more than you can afford, it is time to move on.
- Find out how much a home loan provider will lend you and at what interest rate. This will help you gauge the most you are able to pay for your first home.
- Before you embark on a home purchase, think about the kind of neighbourhood you want to reside in and the style of house you want. Make a checklist of your home must-haves, which you can take along with you every time you visit a house. Click photographs so you can tick each item off your list. Organisation is key to you and your family making the right decision.
- You don’t necessarily want to buy a home in a building with a high percentage of people living on rent. They may not look after the property the way they would if they were owners. So look for a society that has a good mix of owners and renters.
- If you fall in love with a house on the first visit, don’t close the home purchase deal in a hurry. Visit the property a second time for a meticulous inspection led by your finances and your needs, not your heart.
- As a first-time home buyer, you must gauge your options by getting acquainted with the local market. Visit houses on sale that are above and below your budget to evaluate how values differ with features and location.
- Once you have zeroed in on the area you want to buy a home, get a sense of what other houses in the area have sold for recently. This will give you an estimate of what your starting offer should be when you’re ready for your home purchase.
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- If you are looking to purchase an older house, you must get a home inspection done. This will help you draw out any possible infrastructural problems, such as faulty fixtures and overloaded electrical systems.
- Build on savings to make a substantial down payment for your home purchase. The more down payment you can afford, the lesser the amount of loan you need from a lender. This means a shorter repayment tenure and lesser interest payment on your home loan.
- Before you set to become a home buyer, try and pay off any existing debt. When calculating your loan eligibility, lenders subtract any EMI payments from your income, so if you have a substantial loan running, you have a lot less income—which reduces your eligibility.
- Consider consolidating two simultaneously running loans. The single monthly payment will not only reduce the amount payable per month, but also reduce the interest rate as compared to what you would be spending on multiple repayments.
- Do not jump into a deal with the first lender you speak to for a home loan. Go around and compare what different lenders are offering. Opt for the best home loan available.
- Home loan approval can be a lengthy process. Therefore, it is a good idea to do your homework beforehand. Find out about home loan documentation, application and approval process, the timeline for a lender to approve your loan, mode of disbursement, etc.
- Your credit score is important for any loan approval. While a credit score above 700 is excellent, a score below 550 will make it difficult for you to get your home loan approved. You can approach any credit bureau for your credit report.
- In case of home purchase in a new project, find out whether the builder has tie-ups with lenders and is offering subsidized interest rates and other attractive schemes to borrowers.
- Buy a home in a project approved by leading lenders. Lenders usually approve a project after checking the property-related documents and authority approvals, and verifying that the property has a clear title and is free from other encumbrances. It is easier to get loan approvals from lenders for their approved projects.
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- It’s great to obtain pre-approval for a home loan before you launch your house hunt. It gives you an edge with sellers looking for a quick transaction. Your dream property could slip through your fingers if you are waiting to secure the financing.
- When you activate a home loan, have a minimum of three months’ of EMI equivalent money in your account even after making the down payment. This way, you won’t be caught off-guard when major unexpected expenses arise.
- If you have just bought your dream home backed by a home loan, make sure you take excellent care of your new home. Regular maintenance can reduce your expenses by allowing early detection of and quick fixing of problems.
Apply for a home loan from Bajaj Finserv Homes & Loans to finance your home purchase. Apart from low interest rates, minimal documentation and quick approval process, Bajaj Finserv home loans offer flexible repayment tenures to make your life easier.