Planning to Apply for a Home Loan?
Buying a Home is a dream for all of us. Here are some must-follow tips for first time home buyers before they move ahead and apply for a home loan.
Plan your budget wisely. The first time home investment is always multi-dimensional. Keep an account of all the costs that need to be incurred while you plan your budget. This includes documentation cost, Registration fee, and Maintenance cost (If you are buying an old property) and most important your EMI.
Fixtures and Fittings
Furnishing, customized interiors and décor, and other miscellaneous expenses should be planned in advance as once you start the process of buying a home loan these elements do tend to become a major part of your budget and not considering them beforehand can spoil the equation of your dream home.
The most important factor in buying a home is its location. Choosing the right location is the key to success when it comes to buying a home. The location you choose should have markets, schools, hospitals and other day-to-day essentials in its proximity. It should be close to your children’s school and your workplace. If properly evaluated a good location serves many folds. Not only you can save a lot in commuting cost in the future years but also enables you to dwell in a secure and accessible environment.
Looking for reputed builders and their completed projects
This is vital as it will give you a picture of the construction quality being provided by the builder and his reputation. Interact with the people who reside in previously completed projects or who have already taken possession in the current project you are planning to invest in. This will help you to know about the builder’s commitments and deliveries also enquire about the quality of material used in the construction. At the end of the exercise, you will be able to give your star rating and choose the best option to go ahead with.
Checking Property Documentation
Check all the property documents in consultation with a competent legal professional. All the property papers related to the property you are planning to buy should be clear, authentic and free from any government restrictions.
Acquire all the relevant information from as many banks as possible related to loan eligibility, maximum loan amount, interest rate, processing fees, foreclosure charges and maximum loan tenure a bank provides. This will again let you choose the best option.
Check your credit Score
The homebuyer’s credit score is among the most important factors when it comes to qualifying for a loan. Check your credit score and try to maintain it as much as possible even if you are not planning for a loan in near future as the day you decide to take a home loan this will serve you in getting a better deal and faster processing of your loan. You can be denied a loan if your credit score is not optimal as per the banks or financial institutions.
Evaluate assets and liabilities
Evaluate your assets and liabilities before you apply for a loan as your EMI should not have a negative impact on your current lifestyle and financial commitments.
Organizing all your documents including your salary/income and tax papers is the best practice to get the best deal when it comes to a home loan it also makes the processing much faster.
While you are planning to take a loan or have already taken one, keep saving and try to close the loan as soon as possible as this will help to save handsomely a big amount of money you will be paying as interest.
Last but not the least-Negotiate, Negotiate and Negotiate, with the builder and the bank as much as you can so that you can boast of the best deal delivered to you.
Hope these simple tips help you while you apply for a Home Loan. Wish you all success in acquiring your Dream Home.