7 Secrets That Will Make Your Home Buying Experience Smarter
Buying a new home is a big decision that requires a lot of research, especially if you plan to apply for a home loan. If you proceed without caution, you may end up facing problems such as delay in procedure, poor quality of construction and paying excessive interest rates. In order to lay proper groundwork before you proceed, here are our 7 best-kept secrets that will help you in taking a smart purchase decision.
- Maintain Good Creditworthiness: To raise the finances for purchasing a new home, you require a home loan, and for a home loan, you need a good credit score. A credit score determines your financial ability to repay a loan. It is calculated on the basis of numerous factors like your credit card balances, payment of previous debts and new credit acquired. Hence, even 5 months prior to your purchase, do not acquire any new credits or make any big purchases. This can lead to an immediate dip in your credit score.
- Go for preapproved or online loans: Applying for an online home loan has made the process of buying a home a lot simpler and less time consuming. Most lenders have user-friendly websites where you can fill a form and submit your application along with the documents. This process is much quicker than the manual procedure and requires absolutely no paperwork. It also offers more competitive interest rates.
- Negotiate when purchasing the home: When placing your opening bid on a home, decide on a figure that you can afford, which justifies the worth of the house. A common practice is to place a bid much lower than the seller’s asking price and then to drive a hard bargain. However, don’t risk offending the seller by bidding a price that is too low. Come up with a reasonable quote and then arrive at a final price that is mutually bebeficial to you and the seller.
- Avoid anticipation associated with market: Prices in the real estate market rise and fall continually. It is common for people to delay their purchase decision in anticipation of the market going down, which not only causes anxiety and delay but can also make you miss out on a good deal. As long as you find a good house that meets all your requirements at an affordable price, don’t stress too much about whether the timing is right or not.
- Avoid emotional attachment: The key to making a sound home buying decision is to be practical rather than emotional. Falling in love with certain features of the house can cause the big picture to blur and lead you to make a bad financial decision. Thus, while viewing and evaluating properties, focus more on the technical aspects, price points and credibility of the seller or agent before you make the final decision.
- Analyse the neighbourhood: The neighbourhood is an important aspect when purchasing a property. It is vital for you to know how the people who live around you are. Also, if you have children, it is important to see if the neighbourhood has good schools and an environment that is safe for children to grow up in.
- Visit the property: This is the primary and most important stage of purchasing a property. You should not at any cost purchase a property by only seeing pictures. A physical visit is a must to make an accurate and safe decision. Images and videos can be edited to make the property look more appealing than it actually is. A physical visit can help you identify the details much better. You can also take a professional opinion from a home inspector or architect concerning the value of the property.
These are the 7 essential secrets every home buyer must know. Once you are ready, you can instantly apply for a home loan with Bajaj Finserv at attractive interest rates and other features for added convenience.