Buying your first home is a big step, both emotionally and financially. It is not just about picking the right property, but also about understanding the process and planning your money well. As a first-time home buyer, every decision you make can impact your future. This guide walks you through the key points to keep in mind before making one of the most important purchases of your life.
Given the complexity of home buying, here are first-time home buyer tips :
When it comes to the size of the home, there are a number of factors that you should consider. This would depend on your budget, the number of family members living in the house today and in the future, the possibility of having guests come over to stay, and whether the house is solely for self-use or you are also buying it from an investment point of view. Answering these questions would help you decide the ideal size of the dwelling.
Developers often levy a higher rate per square foot for flats which are located on higher floors in a high-rise building. This implies that the rate of the first-floor apartment may be cheaper than one on the tenth floor. Corner flats similarly are sold for a premium. Keep this in mind while making a purchase.
Today, there is no dearth of choices in housing. You can get everything from a small studio apartment to a mansion. Decide on the type of house that is most suited to your needs. Also consider if you would like to purchase a pre-constructed property or a tailor-made one to suit your needs.
Modern housing has revolutionised the way people think of their homes. Today, housing complexes come bundled with amenities like gyms, spas, swimming pools, clubhouses, etc. However, the occupants have to bear the cost of these amenities. You should carefully weigh the need for these amenities and whether they fit in with your particular lifestyle. For example, if you have young children, having an apartment complex with a game room may be a good investment. Do not forget to consider parking areas or garages if you own vehicles. You will need space for them.
Depending on your daily schedule, work location and the need for good schools for your children, you should pick a house in the right area. You should also opt for a location with a hospital in the area where you can go in case of medical emergencies. Some people need good access to public transport like the presence of a metro station nearby, a bus stop or a train station.
It is important to take into consideration the reputation and track record of the promoter or builder of the property in which you plan to purchase your house. Find out if the builder has the reputation of completing projects within the stipulated time, quality of construction, delivering what has been promised.
To purchase your dream home, you need funds. While you may have accumulated some part of the funds, you may need to consider taking a home loan to fund the gap. Consider taking a home loan from a reputed housing finance company, which offers timely sanctions and disbursals, long tenure home loans, levies reasonable charges. A home loan not only helps you fund your dream home, you also get tax benefits on interest payments and principal repayments.
A pre-approved home loan is given based on your income and credit score before you choose a property. This helps in setting a clear budget and can speed up the process once you find a suitable home. Lenders usually fix a loan amount that they are willing to provide, which helps you negotiate confidently with the seller. It also gives the seller the assurance that you are a serious and financially capable buyer.
The sale agreement is a legal document that outlines the terms and conditions between you and the seller. It includes payment schedules, possession dates and details of penalties if either party fails to follow through. As a first-time home buyer, you should carefully go through every clause and seek legal help if you do not understand something. This avoids confusion and helps you safeguard your rights in case of future disputes.
The price of the house is not the only cost you will bear. There are several additional charges like registration fees, stamp duty, maintenance deposits, utility connection fees and interior work. These can increase the final amount significantly. As a first-time buyer, preparing a complete list of costs and adding them to your total budget is best.
A high credit score not only increases your chances of getting a loan but also helps you secure better terms, like lower interest rates and higher loan amounts. To maintain a good score, pay your bills and EMIs on time and avoid taking multiple loans at once. Check your credit report regularly to correct any errors.
Before buying a home, make sure the property has clear legal ownership and no disputes. Important documents to check include the title deed, occupancy certificate, building plan approval, property tax receipts and encumbrance certificate. You may also consult a lawyer to verify the paperwork thoroughly. Any missing or incorrect document can lead to legal trouble in the future.
Purchasing your first home needs a lot of thought and planning. Make sure you check off the tips on this list to avoid common issues that a first-time home buyer faces. Every step matters from choosing the right size and location to reviewing the builder's reputation and home loan details. With the right research, preparation and financial planning, your journey from searching to settling down in your dream home can be smooth and rewarding.
Also Read - What is Home Loan