Taking the decision to buy your own home is probably going to be the most financially significant purchase you will ever make in your lifetime. While itâ€™s impossible to be too prepared when buying a home, you do need to do a fair bit of research into the process before diving in. After all, it involves a very large amount of money and you wouldnâ€™t want to hit rock bottom!
As with everything else, there are always some fraudulent people posing as builders who will try to swindle you of your hard-earned money, so do be careful on the way you go about home-buying. Here are some things to know when buying a home:
Take your time:
Just as you wouldnâ€™t hurry up in finding a life-partner, similarly, there should be no hurry in buying a home either. Take your time, look around and check out the various options available before deciding. Nowadays, there are villas, villaments as well as apartments on offer in homes. Decide on what your needs are and buy accordingly.
Keep your credits looking good. Pay-off any outstanding debts and improve your CIBIL score. This refers to your credit eligibility as banks check your CIBIL score with concerned authorities before sanctioning any loans to you.
You are usually expected to make a down payment of around 20% of your homeâ€™s cost. And this can amount to a really large figure! You need to start saving early for this nest egg. And the larger the down payment you put down, the smaller the home loan you will need; this also translates to smaller EMIs paid over the years.
Once you find a home that looks viable, dig around, find out all the information you can regarding the builder and visit any other projects constructed by them. Ensure that it is built in a safe area where your family would be safe walking unaccompanied. Check for any sources of pollution nearby too.
Buy into a location thatâ€™s on the up-rise. This will ensure that your home isnâ€™t too expensive but will gain in value over time, making it a good investment.
When home-shopping, itâ€™s better to go with branded builders. As their reputation matters to them, they are least likely to provide sub-standard products.
This is a crucial stage. You need to ensure that all permits, taxes and legalities are in place before signing any sale contract. You need to go through the small print carefully and hiring a property lawyer might be useful here.