5 tips for buying a home!

By | December 23, 2014

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Do you think buying a house is easy now with lots of options available? If so, you are wrong. Buying a property can be one of the most stressful activities of a life time due to the many factors that you have to be careful about while zeroing down the best one.  A smooth house purchase is every one’s dream, but it involves some tips and tricks. Here are a few tips that may help you on your way:

Step 1: Fix an affordable budget:

The first step for a smooth home buying is fixing an affordable budget. Make a plan after reviewing your income, savings that can be used for down payment, how much home loan you are eligible for and how much EMI you can afford. While making the plan, don’t stretch it thinking that you can afford it, or by keeping in mind some possible salary hikes. You are likely to face some other expenses like spending on interiors, furniture, electrical fittings, miscellaneous purchases etc, which many buyers fail to count initially and drain out all their savings. You may even fall into unwanted debts which may take time to recover from.

Step 2: Check out your loan eligibility:

It is a good idea to visit your bank or check online to know your loan eligibility before starting your property hunt. Many people assume that they are eligible for some amount they have in mind by checking with their friends or some sales executives of banks. And at a later stage, when they submit an application, may be after paying the advance only they come to know that they are not eligible for the expected amount and there follows a mad rush and stress. Having an idea about the possible loan amount for you will help you to make your plans smoothly and zero down a project accordingly

Step 3: Smart hunting:

You may come across lots of builder advertisements in news papers, magazines etc. Making a visit or calling up every advertiser will only take your time out and make you feel exhausted. Zero down your preferred locations first. It can be near your office, or near to your children’s school. Then check out the property prices around there. If it is beyond what you can afford, think about the next option, or the next nearest location.

Once you short list the preferred and affordable locations, start your search. If you are the smartest, you will search online first. Because sitting at your own comforts you can check as many in the shortest time, and also read customers reviews and property price trends. Ask your friends who live around the place. And real estate agents can be the last option only.

Step 4: Look beyond the brochure:

Don’t get carried away by colourful brochures and 3D walkthroughs. Always keep in mind that those are not the real and the real may be far different from these. Visit the place, watch the ongoing construction work and if possible have a look at some of the builder’s previous projects. It helps a lot in going ahead with confidence and to keep away the disappointment and fights with the builder at a later stage. Also check the builder’s reputation and rating online.

Step 5: Check the legals and hidden charges:

Many buyers in recent times have been caught in an unpleasant situation where the flat they booked got embroiled in a legal battle between the builder and the farmers who sold the land to the builder. If you are looking to close a real estate deal relying on the word of mouth of the builder, it may come back to haunt you. Get a complete insight about the project and verify every document with the help of a lawyer, before singing on any agreement with the developer or finalizing any financial commitments. If the builder is not keen to share the documents or is delaying in showing any such legal documents, raise the red flag. A good way to check the background of the property is to see if financial institutions and NBFCs are backing the project.

Similarly there are several additional costs like floor rise charges, infrastructure development fee, charges for parking area, club membership charges, pre maintenance charges etc which come at a later stage. Know about all these beforehand to avoid surprises at a later stage.

If you follow these steps judiciously, your house purchase is sure to be a good experience. Happy buying!

YOU MAY ALSO WANT TO: Find out how much the EMI will cost you – Home Loan EMI Calculator

 

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