Buying your own home is a decision that needs to be well thought out and timed. If you’ve been mulling over the prospect of owning your own home for a while now, this article will help you make the right decision in order to get a profitable deal. Shall we begin?
First things first – Get your credit report
It’s always better to start off any investment plan with as much information as you can gather. Your credit report carries vital information about your credit history and will go a long way in setting the tone for your Home Loan decision. If you’ve maintained a good Credit Score, lenders will be more likely to approve your Home Loan application.
Your credit report will also give you a detailed insight into how you’ve been maintaining your credit accounts, so if you happen to have a score that could use some improvement, you can work on that and get your score to a good number before applying for your Home Loan. Makes sense, right?
Plan your purchase
Like you would with any financial decision or expense, planning and budgeting when buying a new home is also essential. Taking out a Home Loan to buy a home is a huge financial decision. In fact, it could be one of the biggest decisions you’ll probably make in your life.
Remember, the type of house you buy must be suitable, considering your financial capacity and goals.
A lot of home buyers assume that owning a home will help them save on monthly rents. While this is true, you must not lose sight of maintenance and repair costs that may arise at any time, not to mention your loan EMIs, of course. You could also consider saving up enough to make a decent initial down payment thus reducing the interest on your loan as well as the EMI tenure.
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For a first home, you must consider the possibility that this may not be the only house you will buy. Who knows? A few years down the line you might move on to bigger and better things. The possibilities are endless.
Therefore, it is very important that you select a property that comfortably fits your budget at the time you are planning to make the purchase. You may think you can afford a slightly more expensive flat or house, but it may not be a very good idea in the long run. Don’t compromise on your financial comfort. After all, who really wants to struggle with high EMIs?
A more affordable house that does not strain your finances will surely give you peace of mind.
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Don’t make hasty decisions
You must spend time doing some really extensive research before you finally choose your new home. The more time you spend deciding, the better. Time will definitely help you make a more informed choice. Research online, by all means. But, it is always better to personally scout out the location of your prospective home and get an idea of the lay of the land, so to speak.
This is even more important if you are considering living alone. Try and find a property that is well-connected to key locations as well as an area that offers basic amenities.
Choosing a Loan is also another important step in the process of purchasing a house. Getting hold of the right lender is imperative. Carefully study all the Loan offers available to you.
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With a slew of tax benefits on Home Loans being introduced, the Home Loan market is getting competitive. In fact, women applicants can claim lower interest rates on Home Loans.
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Many banks offer several incentives to women applicants. Remember to do your homework and ask the right questions before you take out a Home Loan. The more benefits you can wrangle, the better it will be for you. Aim to bag the most competitive interest rates on your Home Loan.
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Don’t loosen those purse strings
Allow that practical voice at the back of your mind to speak out and caution you against making impulsive financial decisions when it comes to buying your house. Choose affordability over extravagance. For a first time home purchase, that would certainly be the wise path to take.
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Think about Home Insurance
The value of most properties only appreciates over time. It is important to consider getting Home Insurance for your new home. Just to make sure you’re covered in case of any untoward incidents or natural calamities.
While you’re at it, give Home Loan Insurance a thought too. You’ll need it. That will safeguard you and your family from the liability of the Home Loan in the event that something happens to you.
Getting a house as an investment
That’s a wise move, really! Many home buyers purchase a home or land to serve as a lucrative Investment opportunity.
If you are not planning to move into your new house immediately, there is no need to worry. The best option will be to rent the house out. This will ensure you get a steady income. Getting rent on your property can help you pay off the EMIs on your Home Loan. Now, that’s a blessing, isn’t it?
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Learn to play the investment game
Like we said earlier, the first home you buy may not be the last one. If you are buying a house property as an investment, you’re on the right track to progressing towards getting yourself a bigger house, especially if that is your ultimate goal.
It’s a similar story with investments in land. If you buy a plot of land, you can let it remain as an investment. As the land value appreciates, you can stand to make a sizable profit in case you choose to sell the land a few years later.
For house property investments, the key is to enter the property market with an affordable property. Put the property on rent. Allow it to earn money for you. Once your Home Loan is cleared, save up the rental income and build up a sizable corpus. That gives you a strong footing when you want to invest in a bigger property. Scale up gradually and you’ll have your dream home before you know it. It’s only a matter of time.
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Think your home purchase through carefully. Make an informed decision.
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