To have a self-owned house is a dream of many. A home brings stability and security to the owners. First-time home-buyers are usually overwhelmed and nervous when picking a residential property because of the magnitude of investment that goes into purchasing a house. Moreover, buying a house can be a complicated process that involves decision-making at every step of construction and a lot of paperwork. Here are a few things a first-time home buyer can take care of when purchasing a house.
Six Things to Know Before Purchasing Your First House
- A home loan can ease the home buying process: A home loan is a secured loan that salaried and self-employed home-buyers can take. The property is collateral for a home loan which helps home buyers purchase a house for a lowest home loan interest rate. With leading banks offering housing loans at customer-friendly terms, low-interest rates, and flexible repayment tenures, home buyers need not compromise when choosing a house. Moreover, one does not have to shell out his entire life savings to purchase a property. An individual can keep his savings for rainy days and take an affordable housing loan that he can repay in comfortable monthly instalments.
- One can shop for the best home loan offer: Housing loan customers have several options. One can shop around to find the bank offering home loans at the most affordable interest rates. With reputed banks, one can know how to get a home loan for as low as 8.65% per annum. A home loan calculator helps a customer know beforehand the EMI (Equated Monthly Instalment) payable towards a loan. A good credit score and readily available and complete documents place a home buyer in a better position to negotiate on the interest rate and terms of the home loan.
- Consider the resale value of the house: Buying the first house is a family decision. People usually buy their first house intending to keep it forever. Still, one must consider the house’s resale value before making a purchase. One may want to sell off the house in the future to move to a bigger house or to shift to another city. Children who get the house as an inheritance may want to sell it in the future. Considering all this, one must look at the house’s estimated worth a few decades later. The development of the area, floor plan, interiors, transportation facility, and access to facilities like banks, hospitals, schools, etc., affect a home’s resale value. One may prefer a house with a good resale value to ensure a sound return on investment on his money.
- Visualise the daily routine in the house: It is easy to get confused between properties that look attractive on the surface. To make a better choice, one may visualise the family’s daily routine in the house. The property should be spacious enough to accommodate the family’s daily requirements. People who host guests frequently may want an additional guest room. Kids may want a study room, the elderly may need enough sunlight, and so on. Choose a house that brings comfort and convenience to the entire family.
- Factor the unexpected costs: The budget one makes for purchasing a new house should also factor in unexpected costs. There are additional costs to the property’s price, like renovation, transportation from the existing residence to the new house, new furniture and utilities, insurance premiums, etc. Plan for these expenses to avoid being caught off guard.
- Avoid waiting for the perfect property: Even though everyone wants the perfect house, every property will have shortcomings. Every home buyer has unique home requirements. While one may focus more on the budget, another may prioritise proximity to his office or kids’ school. It is best to create a checklist of things one does not want to compromise on. Apart from the points in the checklist, one may consider compromising on a few non-crucial features. Home buyers should do their due diligence and ensure the property is legally safe as an investment. A basic background check of the property seller and a detailed check of the property papers is essential.
Also Read: Top Up Loan Is a Cheaper & Better Alternative to Home Loan
Keep these essentials in mind before purchasing a house to make the home buying a pleasant and comfortable experience. A home loan from a trusted bank helps a home buyer arrange the finances required for the purchase.