Things to check before buying a house
Buying your dream home is not an easiest task. A lot of questions tumble in mind when a person decides to buy home. Some wait for the right deal to come up while some may even spend a lifetime waiting to buy the home. Buying a home is the biggest financial investment a person will ever make in his/her lifetime, so everyone would want it to go perfectly.
Buying a home requires a pre-check. So, here are few things that you should check before you seal the deal.
Your first step to buying a home is to decide on a budget. Do a careful study of your finances before you start searching for home. This will give you an idea about how much money you can set aside for the home purchase. You can also break the budget into down-payment and the monthly EMI’s that you can afford to let go from income.
Down-payment- Banks finance maximum 80-85% of the property cost and you will have to pay the other 15-20%.
Monthly EMI’s- It may run for over 20 years, in many cases. Plan it keeping in mind your other financial commitments like children’s education, medical needs and emergencies etc
With increasing property rates, when you don’t have any other alternative but to opt for home loans, look for a bank that will give you home loan with the minimum interest rate. There are many websites available for checking lender info, eligibility for home loan, rate of interest on home loans and calculating EMI etc. You can also do a comparison about which lender offers the most convenient loan.
Next comes the choice between ‘fixed interest rate’ or ‘floating interest rate’ or mix of both. Before taking any financial decision consult a property expert or take help from bank’s relationship manager, as your entire financial burden will depend on it. Also, don’t forget to check the flexibility on the bank’s part to tenure in the case of an interest rate revision or to adjust the EMI amount.
Please Note: – Home loans are calculated on the property location, history of the developer and can be obtained for both new and resale property.
Decide your property location after completing all the financial calculations. Before going ahead with the buying decision, you should check distance of your property from public amenities, hospitals, corporate offices, schools/colleges, marketplaces, malls, police station, etc. Make sure you also inquire about security of the place.
Please Note: – The price of the property depends on the area and locality.
Property documents are the most vital part of any investment in properties. In order to avoid fraudulence attempt to cheat you, make sure you check all the legal papers of the land /plot on which the building is being built.
When you buy a property, you will have to sign a set of documents. Ask builders to show you all the agreement documents. If you don’t trust the builder, you can get the document from a municipal corporation or sub-registrar.
List of documents: – Property card / 7 X 12 extract, Title & search report for the last 30 years, NOC from Environment departments, Approved layout & as well as building plans from competent authority, Commencement certificate
Many people ignore small details while purchasing a home, which may not seem to be so crucial initially. Before you purchasing a property, don’t forget to inquire about the annual maintenance charges. In most cases, you have to pay a share of the overall building maintenance.
Also, inquire if there is electricity backup in the community or the building as frequent power-cuts are common. You should also check if the lifts in the building work properly and the lighting within the house and in key common areas such as corridor and staircase have 24/7 power backup. Also check if a regular water in supply building is available or not.
“We hope all the uncertainties you had while deciding to purchase a new home have been answered with this. Happy house-hunting with these home buying tips!”