Make the best out of your hard-earned money with the top 10 tips to buy your first home.
Are you among one of those whose next dream is to have a home of your own? Home is such an asset that almost every Indian wants to own. Buying a home is one of the crucial elements of a to-do list of life. Sometimes it is the next target after a good job, sometimes it’s before marriage or family planning.
With this dream, attached are many other things and formalities. Especially, when it is our first home, we need to be as cautious as we get excited. It is not an asset that we will buy today and sell out after a year until we are not real estate investors. Besides, the investment involved is also a huge amount of money and emotions.
With the given top 10 tips to buy your First Home, chances are better than the decision would be best and you will have your first home in your budget and preferred locality.
So, here we go for some of the chosen tips.
Check the Location and Neighborhood
One of the most important things to consider while buying a home is location and neighbourhood. Somewhere, we can compromise with a few imperfections in a home if we love the location and neighbours.
Before buying a new home, you must consider the proximity of your home to your work, ease of access to important places, easy connectivity to airports, hospitals and public transportation.
Even if you are a real estate investor, location plays an equally important role in buying and selling real estate property.
The location initiates desirability which creates/increases demand which further increases real estate prices. To buy real estate property in a good location, you may have to pay an extra amount but that’s worth it as it comes with many more profitable options.
Consider your Budget
Before buying a new home, one must prepare a budget that should duly reflect the money that will be left out each month to meet other expenses. Buy your first home to add comfort not to add on the stress of meeting the EMIs.
Your home or apartment must satisfy your present needs in the budget that you have finalized. As a home buyer, considering your budget and getting the present major needs will help make the right decision.
Avoid getting Overly Emotional about Deal
The best way to close a deal is to consider the plus points of every offer and counteroffer and never let the other party see your sour face. The best way to do that is by appointing a real estate agent who would be the face of getting the deal closed. This will save you from getting overly emotional about the deal.
Avoid paying Sleeper Costs
Sleeper cost is the difference between renting and homeownership, which one should avoid. Usually, home buyers focus on their mortgage payment without considering the other expenses like utilities, property taxes and homeowner association dues. Homeowners must be prepared to pay for repairs (if they are buying a used apartment or home), maintenance fees and an anticipated increase in property tax. Before buying a new home, one must ensure the budget for sleeper costs to avoid the risk of losing your property.
Home Loan eligibility
Another important tip is to check home loan eligibility. Home loan eligibility depends upon the income, repayment capacity, ongoing loans and the age of the loan applicant. The lending banks provide online services to check for the home loan eligibility with the calculators that calculate the loan eligibility of the borrower. The maximum amount of the loan that can be sanctioned differs from bank to bank. The eligibility criteria also change as per the bank or RBI regulations.
Get for Your Home Loan Pre-Approved
A buyer having a pre-approved mortgage loan is always at a better edge than that who
Is pre-qualified for a loan. A pre-approved loan clearly indicates that the lender has considered all your financial information, well-evaluated your ability to afford and the amount that they should lend you.
Apart from avoiding financial risks, pre-approved loans save a lot of time and energy which you would have otherwise invested in looking for apartments or houses which are out of your budget.
Pre-approved loans allow you to get the best deal in your budget and at the best interest rates.
The Size and the Floor Plan
Another important thing that is helpful for home buyers is to consider the size and the floor plan. Depending on the number of family members and your lifestyle, you can finalise the number of bedrooms & bathrooms we need, the size of the kitchen required, the size of terrace & garden we want, etc.
A large apartment can offer you additional space for a balcony garden, decorative crafts & other art projects, furniture, etc along with comfortable space for every family member and pet (if you have any).
Take help of Real Estate Agent for Pricing Expertise
While you spend time online to pull information on sales of apartments or houses, real estate agents hold the expertise to help you identify that specific house is overpriced or underpriced. While buying your new home, you must take the help of a real estate agent to save your time from looking and touring the homes that are out of your budget or apartments which won’t suit your lifestyle. For example, if you like modern amenities, such real estate agents will get a good idea of what you’re looking for and help you with projects like GMADA IT city, GMADA Aero city in Mohali, Punjab which will have all the latest & modern amenities.
Check for Good Resale Value
Another important tip while buying a new home is to check the resale value. Resale sale Value is a crucial factor that must be considered before deciding to invest or buy a real estate property. Apart from focusing on prime locality and the budget of the property, homebuyers must consider the release value of the real estate property too.
Consider the Stamp Duty & Registration Fee
The Stamp Duty & Registration Fee are important expenses that must be considered while buying a new home. Alongside that, taxes like the sales tax and income tax collected by the Indian government must also be taken into consideration.
At the time of making a budget to buy a property, one must check the rate and charges applicable in your area. To know the market value of real estate property you are willing to buy and the stamp duty amount on it, you can take the help of real estate agents.
Check for the best real estate agents in the city like BullsEstate which is the leading real estate agent in Mohali, Punjab, and consult about these crucial things.