Are you planning to buy a house? Buying your first house is a significant milestone. While most people imagine their perfect home for years, not everyone can make it a reality. There are several factors involved in the home buying process, and a buyer must be sure as well as prepared to take this step.
Why Are People More Zealous to Buy a Home During the Festive Season?
The festive season in India begins in the month of October and goes on till the end of November with the much-awaited festival of lights. Diwali is the most celebrated festival in our country and holds immense significance for the consumer market. The real estate industry witnesses a rise in sales during this time of the year as people consider it an auspicious time to make big purchases like property.
Additional Read: Why is Diwali the Best time to buy a property
Buying a house or property is much more complicated than sifting through real estate portals and websites. There are countless things to look for in your next abode. After all, to buy a new house, you have to imagine your life there and also keep an eye on the state of finances. So, before you make your dream come true, make sure to go through these points to ensure it doesn’t turn into a nightmare.
But, Before that Educate Yourself on the Impact of COVID on Real Estate
You might think that buying a house during a pandemic is a bad idea but what we are about to tell you might help you reconsider. It is true that the coronavirus pandemic has hit most industries hard and has disrupted many businesses. The real estate market has taken a big hit as well, which is why if you want to buy a new house then this might be the best time.
With interest rates at a 15-year low, some lenders are even charging an ROI as low as 6.9%. Furthermore, property rates at an all-time low and developers are offering attractive deals to entice homebuyers. Therefore, this is a great time to buy a new house and property for personal use.
Things to Keep in Mind While Buying a House
• Make a list of priorities
Balcony or a garden? Garage or a big kitchen? If you want to buy a new house, be sure of what you want in it. Every homebuyer has different priorities, and thus, the buying process takes a lot of time and energy. You probably won’t take the first house you are shown, and it might be after dozens that you find something you like. Hence, a person must have a clear image of the home they wish to live in.
Also, you can now make use of several online websites and apps that let you take a look at new properties on your smartphone without stepping out. Moreover, you must also be flexible when it comes to house hunting, as not every property may tick every point on your list. Look for the place that fits most of your needs and judge whether it has scope for improvement.
• Think of the future
While taking significant decisions, it is critical to keep the future in mind and not just plan for the life you have right now. If you are single now but decide to get married in the future, it is essential to consider said possibility when you step out to buy a new house.
Even if you are planning to buy a home next festive season, you must begin financial planning this year, keeping in mind any pre-existent economic commitments. Also, start saving more and build a good credit history for availing housing finance in the near future.
Additional Read: This Diwali give your Home Festive Makeover!
• Save for the down payment
If you want to buy a new house, the first thing you should do is start saving for the down payment. The down payment is the first amount you have to pay while taking any kind of loan. What one should know is that the larger the amount of down payment, the lesser will be the consequent loan to be paid later.
Therefore, before you apply for a home loan, make sure you are prepared to pay the maximum amount in the form of the down payment which can lie anywhere between 10% and 25% of the market value of the house. This will save you a lot of stress and effort in the long run and is the best way to ensure a timely repayment.
• Consider investing
When we talk about saving money, another aspect to consider is investing money to help you achieve your financial goals. Saving money is indeed the most important part of buying a house but a clever way to earn more is by investing in safe sources like direct equity and mutual funds. Don’t be tempted to invest in unpredictable markets like the stock market as that could easily backfire. Invest in places where you know there will be rewards even if they are small. This could be an asset while saving for the down payment.
Additional Read: Millennials to invest in Real Estate Sector This Diwali
• Get your documents in order
This pointer may seem pretty basic, but you will be surprised to know that most people fail to get their documentation in order before applying for housing finance. Make sure to research on what documents you will need to buy a new house.
Several financial and personal documents are required while applying for a loan and having these required documents ready and arranged in order will not only make the process more efficient but also speed things up considerably. Some of the documents you must keep handy are your last few pay slips, bank statements as well as your tax returns.
• Location is critical
Let’s face it! If you want to buy a new house, location is key. The location must be safe, green as well as practical because you need to consider the distance from your workplace and other important venues.
Another big concern is connectivity because nobody wants to live in a place where there is limited access to public transport. You would also need your house to be near a market, schools, and hospitals to have all your essential needs met. Therefore, choose a safe neighborhood that fits well with said guidelines.
• Choose the right housing loan
Housing finance deals are an integral part of buying a house, and hence, a buyer must research and compare them thoroughly before settling on one. In recent years, lenders have come out with borrower-friendly loans that are convenient and hassle-free. A borrower can now take a home loan that is tailored according to their needs. However, some factors that should be given a lot of thought while choosing a housing loan deal and lender are:
o CIBIL score:
A good credit score is a way for the lender to determine your risk profile that is your capability to repay the loan on time. Thus, maintaining a good credit score can fetch you a better housing loan deal with lower home loan interest rates. Remember, a good credit or CIBIL score is above 750 and to ensure this you must avoid any delays in previous payments and credit card debts.
o Interest rates:
Another essential factor to consider while borrowing a housing loan is the rate of interest offered by the lender. A lower rate of interest will make it easier for you to repay your loan. Look for a lender that offers comfortable interest rates that you can afford. As mentioned above, improve your CIBIL score to get better home loan interest rates.
o Flexi repayment:
Furthermore, it is important to find a home loan with a flexible repayment policy as it would reduce your home loan EMI burden. There are different kinds of repayment schemes that you can explore before choosing and settle on the one that suits you best. A flexible repayment scheme is a big advantage for a borrower and makes it easier to repay loans over a long period.
Looking for Housing Finance This Festive Season? We Can Help!
If you plan to buy a dwelling soon, but are not finding the right finance option, turn to Tata Capital. We understand that planning to buy a house is a huge financial as well as emotional investment; which is why; we offer housing loans at attractive interest rates, with minimal paperwork, flexible repayment tenures and a hassle-free application process.
Additional Read: 5 Useful Tips to Get a Perfect Home Loan Deal This Diwali!
Know that Tata Capital is a leading lending institution in India, and we resolve to provide the best financial solutions to our customers.
So, why wait before it’s too late! Know all about our housing loan offerings and check your home loan eligibility to apply online or offline by logging on to our website or giving us a call today!
01 July 2024
8 mins read
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