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Tips To Make Home Buying Process Less overwhelming

Home Purchase Loan

Thinking of buying your first home? Then you must be someone who may have spent countless hours researching online or discussing about it with your friends, family, co-workers, maid and even your cab driver. Now, before you feel overwhelmed, just pause. Breathe. And check out these 10 simple tips to help you breeze through the home-buying experience. You are welcome!

1-Keep the down payment ready- You never get full loan amount for home loan. 20% payment of home loan you need to pay as down payment. However, few lenders now permit much less, and first-time homebuyer programs allow as little as 3% down. Nevertheless, less than 20% down payment leads to higher costs and paying for private mortgage insurance. Use the home loan calculator to plan you home loan calculator. Some tips for saving for a down payment include setting aside tax refunds and work bonuses, setting up an automatic savings plan and using an app to track your progress.

2-Budget Matters- Be honest about your current liabilities and income, before buying a home loan. One tip is to avoid properties that are more than 3 times the annual income of your family. You will also need liquid cash to pay the down payment, brokerage and stamp duty.

3-Check your loan eligibility- Figure out your eligibility for a home loan. Determine how much home you can afford by using affordability calculator. Know what is actually within your price range and how much you can safely afford to spend.

4- Research-Familiarise yourself with the changing trends of the real estate market by reading newspapers, magazines or websites. Many institutes offer assistance programs for first-time home buyers with perks such as tax credits, low down payment loans and interest free loans up to a certain amount. For example the Government of India has launched Pradhan Mantri Awas Yojana (PMAY) where the interest rate of home loan is very less. There are special home loan schemes for the working women too. To avail these kind of benefits, it is advisable to do thorough research to make your home buying experience profitable.

5-Check your credit-It is always advisable to check you credit before you start your home buying exercise. Check your credit score and improve it if it is low by paying your EMI’s and credit card payments on time. When you’re taking out a mortgage loan, your credit will be one of the key factors in whether you’re approved, and it will help determine your interest rate and possibly the loan terms too.

6-Buffer money for after move-in- Home shopping do not end after move-in. In fact you need to keep more money at your disposal once you shift into your house. It is very much required to make your house furnish the way you want it to be. Starting form furnishings, updating fixtures, modular kitchen, new paint and more, you need money for all.

7-Put any new credit activity on hold- When you are applying for a mortgage, try to avoid opening new credit accounts as it will decrease your score and it will hamper your credit score when the lender runs a hard inquiry.

9- Hire an agent-A good real estate agent will provide you with relevant information and will negotiate on your behalf as well. Get your property documents checked by a decent lawyer this will help you from making major money mistakes.

10- Background check of your builder- It is advisable that you do an extensive verification of the builder from whom you are buying the house. See his past or current projects or even post queries on the various online real estate forums. Read up or ask people with a strong local network about the builder and his credibility in the market know whether the land in question is under litigation or not.

Must Read : How To Claim Tax Benefits On Joint Home Loans

Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.

SMFG India Home Finance Co. Ltd. (Formerly Fullerton India Home Finance Co. Ltd.)
CIN number: U65922TN2010PLC076972

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