10 Pointer Checklist for First-Time Homebuyers in India

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hardik, April 17, 2019

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Buying a house for the first time seemed like an unachievable goal in the past because of high real estate prices and unfriendly processes. However, easy availability of finance, schemes such as PMAY, incorporation of RERA, and more choices in the property sector has made it an easier proposition today.

With proper planning, you can easily buy a home and arrange affordable financing.

If you are a home buyer looking to buy the perfect home within a budget, these pointers make for a sound beginning.

Make a proper financial plan

Basis your monthly income, budget your current expenses. These may be expenses you incur towards recurring responsibilities like investments, loan EMIs, insurance premiums, and education fees for your kids, and more.

In order to execute a proper financial plan, you will have deduct your on-going expenditures from your income to arrive at an amount that you can conveniently pay as EMIs on your home loan.

Of course, count in salary hikes or income increases and then reach a conclusion regarding how affordable your home loan is for you. You can rely on a competitive home loan from trusted lenders like Bajaj Finserv Homes & Loans and get funds up to Rs.3.5 crore via a quick sanction.

In addition to finance, you can also get help in finding the right property with Bajaj Finserv Homes & Loans and enjoy facilities like in-person site assistance, documentation assistance and nil prepayment or foreclosure charges on your loan.

Additional Read: What Are the Benefits of RERA for Homebuyers?

Assess your future needs

Apart from your present needs, future needs also play an important role in your property investment decision. If you are keen on residing in the home you are buying then your future needs will revolve around connectivity, infrastructure, civic amenities, etc.

On the other hand, if you are putting your property on rent, then proximity to business hubs and ease of transport will draw tenants, which in turn will give you higher rental income.

So, analyse your future needs as precisely as possible and then invest in a property that will benefit you the most.

Check your CIBIL score

Your CIBIL or credit score is the determining factor for your home loan application. If your credit score is 750 or more, then you are bound to get a quick sanction on a substantial amount loan on favorable terms.

A good credit score proves your creditworthiness and positions you as a trustworthy borrower. However, if your credit score is on the lower side, then even if you qualify for the loan based on your lender’s eligibility terms, getting an affordable sanction will not be easy. So, check your score, and works towards increasing it before you apply for a home loan.

Find a property agent

Once you have taken care of your finances, the next step as a first-time home buyer is to hire a real estate agent. Getting an experienced real estate agent who knows the city well will help you get market insights.

For instance, if you are planning to buy a property in Bangalore, a local agent can advise you about the price in the area per square foot, so you can make a more informed decision.

You can also rely on property aggregators to view all RERA-approved properties or count on your lender’s approved housing project list to choose from.

Additional Read: A Comprehensive Real Estate Checklist You Need to Follow Before Buying A Home

Research the location and builder

Another key factor to focus on before finalizing the property is the location. When you invest in a property in a high-growth area, there is a huge potential for capital appreciation.

To identify such a property, keep things like proximity to educational institutions, hospitals and malls, and transport facilities in mind. Also consider future infrastructure development of the area.

Next, read more about the property and the amenities it has to ensure it will add to your and your family’s comfort. Lastly, don’t forget to check the builder’s reputation and past projects before you shortlist it.

For instance, if you are looking for a property in Bangalore, you may think of DLF Woodland Heights as it located in Jigani, an area that is expected to see tremendous growth in the future. Further, it is built by DLF Group, which is a well-known player in the real estate market with 60 completed projects.

Additionally, you can also checkout Provident Park Square built by Provident Housing Limited and located in Judicial Layout, Bangalore. This is one of the demanding residential projects in Bangalore.

Visit the property physically

After you have decided on a property, visit it physically to make sure that the builder or developer is offering exactly what they have promised. This will help you ensure that the specifications and amenities on offer are as per the blueprint and there is no alteration from the description in reality.

Moreover, if your property is under construction, visit the site regularly to know the status of construction.

Additional Read: 5 Important Points to Consider When Buying A Property in Mumbai

Carry out a home inspection

While you conduct thorough research about the locality and prices, you should also keep home inspection in mind. This can help you detect potential damage that needs to be addressed.

You can hire professional inspectors or do it yourself so that you can get any issues rectified by the builder or seller.

Understand all the costs involved

Before buying a property, calculate all the costs that will be a part of the total purchase in order to make an informed decision.

This is because you not only pay the purchase price but also stamp duty, registration fees, and other such charges to complete a home purchase. Apart from this annual maintenance charges will also be a part of your cost. Not preparing for it may strain your income.

Negotiate with the seller

Don’t hesitate to negotiate with the seller for better rates. Builders often offer special prices and discounts from time to time, so make sure that you sign up for such updates in order to negotiate better. When you are buying an under-construction property, ask about the pre-launch and launch prices to get the best deal.

Verify all the legal documents

Buying a house is probably one of the biggest decisions you make in your life. Thus, it is important to ensure that all is done within the legal framework.

There are a lot of important documents that are required for the sale of property like sale deed, share certificate, sanction plans, and society documents. Ensure that all these documents are duly signed and authorized by the concerned person before you finally close the purchase deal.

A little bit of research and thought will make the home buying process easier for you. Whether you want to buy a property in Bangalore, Hyderabad, Mumbai or any other city, these tips will help you at every step.

To avail a home loan instantly to fund the purchase of your house, check your pre-approved offer now and enjoy instant approval as well as a customized deal.