The Best Way To Find Your Dream Home
Buying a house is one of the biggest investments that people make. However, financial constraints and rising property price, only aid in delaying this decision. Attaining your goal of buying a house is not that easy. You need to do your homework well, gain sufficient information and show tremendous patience. If you are ready for this, then welcome to the world of house-hunting.
The entire process of finding and then buying the right home can be very exhilarating. As a buyer, you need to know your housing requirements, plan your budget, research about the locality, find a suitable house, negotiate with the seller, etc. All these things can turn complicated, if you do not gain practical and current information on the below given check list points. These points are the best way to find the right home, suiting your budget and personal requirements.
Set Your Budget
Setting up a price range for your to-be owned house is a vital step. Affordability is the key to buying a house or you will be in deep financial trouble. As an initial step, plan your down payment. Saving money every month is quite essential. It is only if you have some lump sum money in your savings bank account that you can use it as down payment. A down payment considerably lessens the burden of home loan. Similarly, think how much home loan you are intending to take and whether you will be able to pay the EMI per month after excluding your monthly expenses. Do not think unrealistically. If you are a working couple, then you can borrow more or else you need to restrict your unrealistic wants. As a thumb rule, your monthly repayments towards EMI should not go beyond 30-35% of your net monthly income. It is very important to check your affordability and then move forward.
Know Your Needs
Before finding a house, you need to know your own/family needs and requirements. Ask questions to yourself.
- Do you want to own a place near your office or in the vicinity of good schools, friends, malls, shops, restaurants etc.?
- Do you want to own a flat, villa or just buy a plot for now?
- Do you want to own a flat in a budget apartment or a multi-storey building?
- Do you want a 2-bedroom, 3-bedroom or 4-bedroom house?
Make a list of all these wants, particularly if you have set a budget. Narrow down on a few localities. Search online to know about market prices in these localities. Remember, buying a house is often a long time investment, so listing down all your housing requirements from a realistic and monetary point of view is very important. If you are willing to expend without compromises, then the choice for housing projects are endless.
Find a Reliable/Experienced Real Estate Agent
Buying a house is not a simple process. With a lot of complexities involved, including having up-to-date real estate information, doing paperwork, getting it pushed and approved, etc., there are many things to do. As a buyer, you will not be able to buy your house smoothly, if you do not have a knowledgeable and reliable real estate agent by your side. You can check with your friends, family or colleagues to identify a trusted real estate agent and then start looking for suitable houses.
Get a preapproved home loan
Banks nowadays are competing with each other by lowering home loan interest rate or announcing discounts to prospective buyers. Take advantage of this by comparing the interest rates of different but reputed banks. Know the advantages and disadvantages of each lender and then decide. A pre-approved loan from a reputed lender will take your credit history, salary and debt into consideration. You on your part can ask about home loan insurance and its benefits, tax benefits, how change in interest rate will affect EMI and loan duration, etc. Be alert, clarify all points and complete all necessary documents to get a preapproved home loan.
If you have taken care of all the above points, affordability being the most important factor, then you can find and zero in on a house you liked the most. All these points will only help you save from financial stress and is the best way to find your perfect home.