Planning to buy your first home? These financial tips are sure to help you
Buying a house is one of the milestones in an individual’s life, especially when it is the first one. Nothing surpasses the feeling of owning your first abode. As you seek perfection in every aspect associated with your to-be home, managing the financials is often overlooked. Considering the most common queries of first timers, experts at Mantri Developers suggest the following tips for a hassle-free home buying experience:
Evaluation of current financials
Proper financial planning always begins with considering your present financial condition. Purchase budget, as people often term it, is determined by the income left post EMI deductions. This will help you select a suitable EMI slab for the home.
As you finalize an amount for home loan, visit a bank and ask for the down payment cost. As per standard procedure, this will be approximately 20% of the total loan money with a credible proof of the fact that you can afford to pay it back.
In case down payment doesn’t seem feasible, you can opt for zero down payment schemes. However, this will correspondingly increase the prices of your EMI’s.
Nearly every bank has a loan scheme to offer, so how do you choose? Conduct a comprehensive market research and consider the opinion of your relatives/friends/neighbors before selecting a bank. Aim for further negotiation with the bank official for a suitable rate of interest.
While this is important, it is equally critical to evaluate the ideal amount of loan, time period required, and estimated EMI figure feasible as per your monthly expenses.
Commonly known as CIBIL score, this serves as a parameter for officials to measure your credibility of paying the loan. It is based on your current income, loan amount, time period of loan return, and loan history (if any). According to experts at Mantri Developers, applicants with a score higher than 770 face no problem in the loan application processing.
Double check the paperwork
Ensure that all the legal documents associated with the property’s sale are in place. It requires documented, verified, and signed proofs of payments, registration, etc, as well as buyer/seller personal details for authenticity.
Don’t be emotional
Not exactly a financial advice, but one of the most important ones to consider. It is understandable that you are buying a house for your loved ones, but that calls for extra caution instead of nodding to everything. Take time in settling for the best deal for the house, observe the future development prospects, work-home distance, and look at it from an investment’s perspective.
Having said that, take your sweet time in selection and keep a tab on the financials so that you can enjoy the feeling of purchasing your new home.