Handy Checklist for First-Time Homebuyers
Buying your first dream house is definitely a significant milestone in the life of any individual. People invest their entire life savings into buying their home and it can be an emotional moment that brings a great amount of joy and fulfilment. At the very same time, buying your first home involves a lot of careful planning with the financials as well as other critical choices.
The choices are not only limited to picking the right home loan suited to your requirement. If you planning to purchase your very first home, then you can go through the below-mentioned checklist to help you arrive at a decision that you will never regret.
- Thorough Assessment of Your Requirements
When you are house-hunting for the first time, it is quite natural to be attracted to everything that looks good. It’s quite obvious as one can explore a good number of real estate options as of today. A majority of builders offer compelling brochures and competitive prices which can excite anyone.
However, when going through the probable options carefully, it is best if you focus your energy on only those properties which are ideal for your current and future requirement. After all, it is a lifetime investment and must be well thought out. Your decision for buying a home can be influenced by any one of the following two causes – as an Investment option or for Self-use. Your requirement will slightly vary depending on these options.
- Figuring Out The Total Cost And Determining Your Budget
Purchasing a home demands huge investment and financial considerations will largely determine the most affordable choice among the available options. Apart from the home loan burden, you’ll also need to factor in other payments such as property registration fee, stamp duty fee, legal checks, transfer of ownership (if it applies), and other such costs. Once you have the complete breakup of costs involved, you can plan your financials that comply with the same.
- Compare Effective Home Loan Rate
Once you have decided upon your budget, you can go through the various home loan options offered by well-known financial lenders. Your credit history will play a vital role while availing a loan. A good idea is to compare different home loans online by using an EMI calculator depending on your loan amount, down payment, processing fee and so on.
Besides, the home loan interest rates will vary depending on your specific requirement. For instance, a salaried home loan applicant can avail loans at a lower rate when compared to a self-employed individual.
- Avoid being in the dark about Eligibility
A majority of individuals are unaware of the terms “credit score” and “loan eligibility” until they are applying for a loan. One must always be aware of their credit score. A home loan applicant with a very good credit score is usually offered attractive interest rates by financial lenders. You can always check your credit score online at no additional costs. A credit score greater than 750 will allow you to avail the best possible loan offers.
ü Maximize your Down-Payment Amount
Irrespective of the choice of the financial lender, it is always better to make a good down-payment. The greater the down-payment amount, the lesser will be the interest that you pay over the loan tenure period. So, quite naturally, your EMI will also be lower.
ü Avoid opting for a Long Tenure period
A longer tenure period has a massive impact on the interest you pay over the repayment tenure. The total interest cost will not reduce despite a drop in your EMI amount. Therefore, it is better to opt for a shorter tenure period while opting for an affordable instalment.