Top 5 Tips for First Time Home Buyers By: Unknown No comments

A little confused, a little uncertain, a little excited: this is how a first time home buyer feels. If you are looking for a house to purchase, there are a few things that you should be first clear with. Here are the top five tips that you should consider:

1) Check the available finances and financing options

Your budget is the primary and most important factor in buying a home. If you have the entire amount saved up, then the process is simple – look for a house that fits your requirement and matches the amount you have. This, however, is not the case with a majority of people, as they borrow from banks or other financial institutions when buying a house.

If you plan on taking a loan, you should check your finance eligibility with a bank even before looking out for housing options. Your eligibility will be determined on the basis of your credit score, your past credit payments, and your overall credit history. Check with a bank to know what loan amount are you eligible for. Then compare interest rates of different banks.

2) Come down to micro-level calculations

The amount you are eligible for and the amount you can afford are not necessarily the same. For deciding your home budget, think about how much EMI would you be able to pay comfortably each month. For example, if you are eligible for 1.6X amount but you can comfortably pay EMIs for 1X amount, look for a home in a 1X budget and take loan for that. It might not be a good idea to pay a high EMI and struggle with other all other expenses.

Do not forget to take the down payment and additional home charges such as EDC/IDC, parking, PLC etc in to account when finalizing the budget.

3) Specify your requirement

Be sure of what you require and what the most important aspects are for you. Ascertain if according to your needs and budget you should go for an apartment or a row house or a villa etc. Then determine if a 2/3/4 BHK suits you. Then establish the finer requirements – larger rooms, larger kitchen, more storage, easy accessibility, green environment etc.

Also decide your preferences in order. If you will get a larger house that’s not in the city’s centre, will you go for it? If the perfect home has lesser storage, would you take it? If a home you like has natural surroundings but is in a developing area, will it be your choice? Know your selection preferences.

4) Consider the smaller aspects too

Locality, size of the home and its rooms, surrounding etc are macro aspects. Do not forget to keep in mind the micro features too. Sizes of the balconies, accessibility of the common areas, visitor parking slots are smaller features that should also be looked at.

These little things matter once you shift into your home. Consider them in advance. Also, if you believe in Vaastu Shastra, you might as well consider that too.

5) Inspect the home thoroughly

If you are buying a ready-to-move-in home, inspect it properly before purchase. If you are investing in a home that is under construction, check the sample flat/layouts thoroughly. Know well about the materials that will be used for construction, fixtures and fittings that will be employed, and sanitaryware that will be installed in the home.

A thorough inspection will assure you of what you are going to invest in.