How to Start Planning for Buying a House

By ketkih | August 15, 2015

Blog_BuyingHome2

Blog_BuyingHome2 Why do I need a House?

 

Independence! What a sweet word.

Admit it, you want to shift from your current cramped lifestyle to a spacious pad that at least gives you the choice to start yoga, have courtyard toilets, grow a terrace garden even. Hain na?

Renters ahoy! Get your own pad and you can drill holes in your walls (to hang up paintings, of course), design and paint it the way you like, pop some eardrums with loud music, not clean it if you don’t want to, and there’s no landlord breathing down your neck.

Moreover, getting a house on rent these days requires so much hunting! No non-vegetarians, no bachelors, no visitors, no noise and no coming late. Phew! And let’s be honest, paying that rent is a big downer at the beginning of each month as well. You start feeling like Fred Flintstone, living in your cave like rented home.

Or, your reason for wanting your own home could be its sinful luxury you can wallow in. Imagine settling down on that expansive balcony deck with a warm cup of coffee to a view of your choice. Or walking barefoot on that gleaming marble floor. Or the exquisite ceramic that perks up your bathrooms!

Or, maybe it’s just about cocking a snook at that snooty neighbor across the street. And letting him know that you have wads of money as well. Buying a house is an investment that gives you instant bragging rights.

Blog_BuyingHome2 When do I need it?

If you’ve been eyeing a house you want to purchase, you’re probably also scratching your head about when to go for it.

Maybe there’s a year-end bonus on its way, which you want to plump down for a property downpayment.

Or got married recently? Then your date of purchase for a new home just moved up a few months.

Or maybe you’ve just moved to a new city, so the need for your own home is immediate.

By now, that stone house you’ve been hibernating in must have started to get to you even if you’ve got your best friend, Barney Rubble, for company.

Whenever you decide to buy a house, here are some cool home buying tips that can get you a spanking new home for free. (Just messing around, of course! Who gives you houses for free?)

Now, let’s say you are raring to buy that house and want it as of yesterday. Take a knee. What kind of home do you really want?

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What does my dream home look like?

We’ve all dreamed of the kind of house Aamir Khan owns in Panchgani, or fantasised about Shahrukh Khan’s lavish house in Mumbai.

If not those extravagant pads, maybe you’ve at least wanted one by the beach or near the hills? A penthouse on the 80th floor or a cosy cottage on the outskirts of the city? Or a sprawling villa, perhaps, in a township, with equally sprawling lawns?

Remember, your dog (or your pet dinosaur) needs to have his day too! So, space (oodles of it, really) is what you’re looking for.

So, here’s the next question that hits you in the face.

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Should I buy land or a house?

There was a time when a piece of land in Goa cost just 500 Rupees. Yes, you read that right. Yes, Goa.

But that was a long time ago. If you plan to buy land, you need to plan for forever. And a day ahead.

We kid. Make sure you have enough money to start building before your land becomes an overgrown cricket field. Or a ripe candidate for farm land.

Land is easier to grab on the outskirts of the city, but the downside to that is the distance to everything you love doing in your city. Within the city, for the same price, you’d probably get just enough to build one room.

Phew! It’s much simpler to get a ready-made house, don’t you think?

It all depends on the length you’re ready to go to build your dream home just the way you want. Those who promised to get their lover the moon are buying up land on the moon way in advance (Hush! Don’t tell anyone!) so that they can settle there when the time comes.

On the other land… err… hand, if you’d rather buy a house here on earth, you need to decide whether you want to go for a brand new home and feel like a king, or go for a used home and save yourself time and effort. Decisions, decisions, decisions!

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Should I buy a new home or an old home?

Old houses bring that sense of nostalgia with them. You remember your grandmother’s kheer, your childhood with your cousins by the stream, or it makes you wonder about that locked up chest that no one seems to be able to open.

But, old houses also come with their leaks and creaks, and you never quite know what that chest is actually hiding. Spooky, huh?

A new house on the other hand, can be a more comfortable choice with all the attendant bells and whistles. Don’t you just love all the beautiful Jaquar or Cera bath-ware that makes life so much easier?

If you do decide to build your own home, you end up infusing a part of your personality into it. Like a walk in closet, a massive bathroom with potted plants or up-scaled junk to give your home that unique feel. You just need to find a whacky enough builder who loves your equally whacky ideas.

And that’s your next step, away from that boring cave, towards your exciting new home.

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How to choose the right home builder?

The search for finding the perfect builder starts where arguments begin and end – the Internet of course.

Just as you use the Internet to narrow down between a S4 and an i6 for the season, it’s important to compare builders and check reviews on them. You don’t want to get duped in any way, do you?

While you do this, it’s important to remember what Abraham Lincoln said – Don’t believe everything on the Internet.

Check the builder’s quality by physically visiting previous projects, if possible. We don’t want the big bad wolf to blow your house down in any way. After all, you would have invested quite a sum.

Psst! Maybe Fred Flintstone’s employer, Slate Rock and Gravel Company, will turn out to be your best bet.

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How much money will I need to buy a home?

Lots! You need all the money that would fill your bathtub.

Jokes apart, depending on the locality, the size of your house, and the builder you pick, you will have to save up a quite a big amount to cover your expenses. And it’s not just the basic cost of the property. Remember to add the stamp duty and registration charges, which can be a quite obnoxious amount.

But, just squirreling away money in a bathtub isn’t going to help.

You can either take a home loan, or save up big amounts, or do both. Here’s where your neighbourhood bank comes into the picture.

The best of both worlds, just like Hannah Montana, is actually possible if you plan right. Here are 8 ways to become home loan ready. But that bathtub better be big!

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Should I take a home loan?

To loan or not to loan, that is the question.

Unless you have the Uncle Scrooge kind of discipline to fill your bathtub religiously, or happen to find Ali Baba’s cave, a home loan is your best bet.

Although, we do hope you find Aladdin’s lamp at the very least. When the Genie is out, you can ask him for the exact amount it would cost to get your home loan. You can use your remaining two wishes as you please.

Seriously speaking, a home loan is a great way to leapfrog into the homebuyers’ market. It not only gives you a leg up in terms of financing your dream, but you also get tax benefits on that home loan. Who doesn’t love tax benefits?

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How much home loan can I get?

Let’s just say that if you managed to get a certain Mr. Trump to bankroll your home loan someway, he wouldn’t miss the money much. But it’s take you just as long to convince him as it would to save up that loan amount!
Let’s say Mr. Trump’s not interested. The home loan it is.

As long as you’ve decided to shoot for a home loan from your local bank, here are 5 home loan truths you should know.

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What type of home loan should I apply for?

Nowadays, we are spoilt for choices. Be it ice-creams, gadgets or bridegrooms. On that last one, here’s a bit of Bollywood gossip – Rakhi Sawant had a gala time choosing one for herself, even though it didn’t end very well!

Choosing a home loan is just as easy as picking out an ice-cream (or bridegroom) as long as you know what you want. There’s added sprinkles, dry fruits, hot chocolate, chocolate chips, gems, jelly thingies, and… phew!

We’ll have to warn you here that the home loan experience may not be as straightforward as it so deceptively appears. Here are 6 options you may not think of while taking a home loan.

The hottest product in the market, of course, is the Subvention Scheme, otherwise known as the 20:80 loan scheme. Read all about subvention loans to know whether you like its chocolate-y nutty flavor.

Now, all those added toppings will be just as easy to pick out according to your needs and what the bank offers.

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Choosing the right bank for a home loan

Choosing the right bank is like shopping for a pair of blue jeans. You need the right shade, the right fit, and of course, you don’t wanna pay exorbitant amounts, do you?

Researching the best lending partner for your home loan needs is one of the most crucial steps in your home purchase experience and is usually worth the time you spend on it. Be sure to check out the top 5 home loan schemes for 2015. You can tell all other banks to butt out, like Jealous 21 does. Now, put the jeans on and take a walk on the home loan lane.

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How to apply for a home loan?

The idea of applying for a home loan might be giving you a minor migraine right now, but it’ll be all gone in a few moments.

Getting a home loan is not as tough as you might have thought, as long as you have all your affairs (*wink*) and your documents in order.

First, know how your eligibility for a home loan will be calculated. Here is an eligibility checklist that can help you determine that.

Next, know what customer profiles bank woo or shun. Find out where you stand as a loan seeker. Here’s a simple way to do that.

Say buh-bye to that migraine and hello to your brand new home.

But, treat that home loan like you’d treat your lady out at dinner. You don’t want to say goodbye to your home before you get to know it, do you? Here are 5 unexpected reasons for home loan rejection that can help you avoid the blushes (some are downright silly!)

Finally, the nuts and bolts of a home loan is that it’s a legal agreement at the end of the day. Now, your bank has the greenbacks to hire top drawer legal counsel and tighten the screws all they want on the home loan agreement so that their bases are covered.

But, what do you do before signing on the dotted line?

Simple, you use oodles of common sense. And put on your reading glasses to know more about handling tricky clauses in a home loan agreement.

And, oh! One more thing. Adding a co-applicant to your home loan agreement can be a great idea – it can give you additional tax benefits and increase your eligibility if your co-applicant is a working spouse. And banks love the idea as well! Know the terms for adding co-applicants for a home loan.

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What to do after taking a home loan?

We don’t want your bat cave crashing down because your home loan became a villain akin to The Joker.

As long as you treat your loan like a lady, as we told you, you should be safe from its wrath.

As with everything else, there are some dos and don’ts you should keep in mind, forever and always.

As long as you follow them, you should be fine.

But, instead of a home loan, if you chose Ali Baba and his forty thieves’ treasure, run!

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