Looking to make your first house purchase? Here are some tried-and-tested tips that will ensure a smooth purchase.
A house is a great investment. And buying a house is one of the biggest decisions of one’s life, especially if it’s their first one. There will, of course, be a lot of doubts and concerns – will you be able to afford it, will you be able to manage the purchase, etc.
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But, with the easy availability and quick access to Home Loans nowadays, it has become even more easier and smoother than earlier times to buy a house. All it takes is to be sure of what exactly your requirements are and a little knowledge about the technical aspects associated with a Home Loan. A good Credit Score of 750+, clean credit history and a steady employment history make you eligible for great Home Loan deals.
Looking to make your first house purchase? Here are some tried-and-tested tips that would ensure a smooth purchase.
Picking the location
One of the first things you should consider before finalising a property and taking a Home Loan is the location of the property. Make sure the house you are interested in is located in a safe locality. Basic amenities such as water, access to supermarkets and hospitals, etc. should be within your reach. And, most importantly, the commute to your workplace should not be stressful, unless you don’t mind spending extra time and money on just travel.
Check your Credit Score
Before lending big-ticket loans such as a Home Loan, lenders consider your Credit Score. It is one of the first and most important thing that any lender will look at before considering your Home Loan application. A score of 750+ is usually preferred by Home Loan lenders. Plus, having a good score, i.e. 750 and more, means you’ll get a loan at low interest rate too.
Score not good enough? Not an issue! It’s quite easy to give your Credit Score a boost. Pay your bills – outstanding loan EMIs and Credit Card dues – on time and in full every month, and stop maxing out your Credit Cards. Maintaining a clean repayment sheet increases your Credit Score, thereby, increasing your chances of getting your Home Loan application approved.
Shop around a little
Don’t just settle for the first lender you apply to or who offers you a Home Loan. Instead, look around, compare between lenders, and finalise the one that offers you the best rates and features. You can take the help of BankBazaar to check your eligibility and compare between lenders that best suit your loan requirements. Click here to check your eligibility.
Make sure you can afford it
When you start applying for a Home Loan, you’ll find that you may be eligible for a higher loan amount than you require. But that doesn’t mean you take it and purchase the costliest house out there. Before you opt for a loan amount, be sure that you can afford it, i.e. you’ll be able to make your monthly payments without having to struggle financially. Also, don’t forget that you’ll have to make a downpayment too.
If you’re not sure about your financial appetite, you can use this Home Loan EMI and interest calculator to get a good understanding the impact of taking a Home Loan on your finances and plan accordingly.
Additional Reading: 6 Things To Consider Before You Opt For A Home Loan
The interest rate dilemma
With Home Loans, lenders usually offer a fixed rate or a floating rate. Wondering what the difference is? Well, with a fixed interest rate, your EMIs remain fixed for the entire tenure of the loan. Plus, it is secure, however, there are less chances of any extra savings in the long run since the rate is fixed.
With a floating interest rate, your EMIs are bound to change based on market fluctuations that affect the interest rate. Although, it is a little less secure than a fixed rate, there are chances of extra savings in the long run as market fluctuations can cause the interest rate to dip, which will lead to lesser EMIs. You get the drift here, right?
There is no right time to buy a house
Yeah, just go for it. With real estate prices and Home Loan rates, you can expect less fluctuation. So, if you’ve found your dream house and got yourself an affordable Home Loan rate, then you should just go ahead and make the purchase. Remember there is no such thing as the right time!
Additional Reading: 7 Things We Bet You Didn’t Know About Your Home Loan
So, have you found your dream home already? Well, here are some amazing deals for you! They aren’t going to wait forever. So, get moving!