If you are planning to buy your first home, it is a really big step for you. It can seem daunting, especially when all your well meaning friends and relatives give you a lot of contradictory advice. It becomes hard to take decisions when you can't separate the truth from beliefs! In fact, buying the first home is so confusing that most couples tend to make many mistakes when they do it.
So we bring you a few tips that will help you, no matter what kind of home you are buying!
Tips for First Time Home Buyers
1. Find out the amount of loan your bank is willing to give you. This is your budget and you should know this before you even begin to look for a home.
2. Do not buy a very big or very expensive home. If the bank is willing to lend you 75 crores for your home, do not look for a home worth that much! Try to look for options around 65 crores.
3. There are many extra expenses like stamp duty, broker fees etc that you need to budget for, over and above the amount you are paying to the seller. Budget and plan for these expenses.
4. Before you hand over any money as your initial payment (bayana), gather all the required information about the home. Get NOC from building, inspect property tax, water and electricity bills for the property. Find out if there are any unpaid dues or objections on the home.
5. If you are buying an old home, budget for renovations also.
6. When choosing your home, think at least 10 years ahead. The home may be sufficient for your needs today. But will it continue to be sufficient after 10 years? You should not invest in a home that will not be good enough for you for at least the next 10-15 years.
7. When choosing the home loan bank, don't just think of the interest rate. Think also about pre-payment options and other facets of the deal.
8. Finally, when buying your home, you should also buy term life insurance for the same amount as your loan. Both you and your spouse need to be covered for this amount, so that the loan can be covered if something happens to you before the loan has been paid off!