Buying a home made easy – 7 easy tips for a smooth purchase
Investing in a new home can be one of the most fulfilling life decisions anyone makes. If this is your first home investment, then you have probably put a lot of thought into finalising the property you want. The first few questions that come to mind could be ‘How do I actually afford it?’ and ‘How to manage to buy a home?’
Fortunately, securing a home loan in India is quite an easy process. You just need to be aware of the technicalities and be sure of what you’re looking for. Here are a few tips for buying a home and making sure your investment is worth every rupee.
Pick the Right Location
Before you apply for a home loan, make sure you’ve chosen a home in the right location. It shouldn’t displace you so much that it becomes a hindrance to your daily routine and causes more expenditure than you had planned. Make sure the locality is safe and close to basic civic amenities like schools, banks, and hospitals.
Improve Your CIBIL Score
CIBIL score is a calculation of how safe you are as a borrower. It’s fairly simple to maintain a good credit score. Pay your bills on time, don’t max out your credit cards, and clear off any outstanding debts. If you have your finances in order, your credit score will give the lender a good idea of how you’ll handle your home loan.
Shortlist Your Options
This applies to two things: your house and your home loan. Don’t mindlessly go through countless property brochures and home loan offers. Pick your best options and approach only those builders and financial institutions that meet your needs.
Buy What You Can Afford
Just because you’re opting for a home loan, that doesn’t mean you can actually buy the costliest house on your list. You still have to put in money for a down payment and you still need to clear out EMIs every month. Calculate your tentative EMI amount and see if it fits within your monthly budget. If you have access to the internet, Bajaj Finserv provides a free online Home Loan EMI Calculator. You can make use of this calculator to calculate and plan your finances appropriately.
Pre-approval lets you book a home even before your loan amount is sanctioned. If you have a good enough credit score, the bank can deem you eligible for a set amount of money. This pre-approval is valid for a good enough time period, usually around 6 months. If you get this done before you even start searching for a home, you can peacefully go about the process of booking your home and getting the loan sanctioned without any issues.
Pick the Right Interest Rates
This is a crucial step for any home loan seeker: deciding which home loan rate of interest to choose. Both fixed and floating rates have their own pros and cons. Essentially, a fixed rate of interest will make all your EMIs equal and a floating rate will have different EMIs each month. With fixed rate you might get more security and fewer saving. A floating rate may prove to be relatively less secure when it comes to your finances, but may lead to more savings in the long run.
There Is No Right Time
Don’t depend on the market statistics and wait for the property prices to fall. Conversely, rushing to buy a house just because the rates have come down for a small period isn’t a good idea either. Keep in mind that property prices don’t fluctuate too much. If you’ve found a good enough house, evaluate your financial condition to check if you can afford it. And if you can, then go ahead and buy it before someone else does.
You could also apply online for a home loan through companies like Bajaj Finserv, who not only process your application on the web, but even let you set up an online account to manage your home loan from wherever you are