Buying a new home is undoubtedly one of the biggest decisions in an individual’s life. Many end up spending a vast chunk of their entire savings on buying their dream house. So, one should not take such important decisions hastily and plan accordingly to make sure they take the best decision.
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It can be all the more confusing for first time home buyers. The article provides a detailed guideline for first-time home buyers in India to invest their funds correctly. Continue reading to know the steps to follow while planning to buy a new property.
- Know your home requirements
The first and foremost step while buying a home for the first time includes knowing one’s requirements. Moving forward to purchase a house without analysing one’s requirements can bring much hassle. Thus, before investing one’s hard-earned money and valuable time to find a property, the owner must decide what he or she actually wants. It will help them proceed with the perfect planning and seamlessly owning the much-desired property.
Buyers must decide the type of property they require and the amenities they need. Furthermore, they must consider the neighbourhood while buying a house. Apart from deciding the property type, selecting the location of one’s house is also essential to proceed further. The property should be close to schools, marketplaces, hospitals, transport facilities, etc.
2. Assess your financial position
The next step involves clearly understanding one’s income and expenses. It will help buyers to set a budget according to their financial condition and requirement. Moreover, people often opt to buy a property without assessing their finances, which ultimately leads to financial burdens.
So, calculating the expenses, existing loans, and debts will help get a clear idea of how much one can afford for the new property. Moreover, investing every penny in buying a house without saving up for the future is not advisable. So, every decision and step should be calculated to avoid future burdens. A buyer must take note of all the expenses such as registration fees, stamp duty, brokerage, maintenance, amenities charges, etc. and other hidden costs before finalising the property.
3. Mediate property search
Last but not least, take the help of reliable sources while searching for the property. Corrupted real estate agents can make you buy a disputed property or house, which can lead to legal issues in the future. Thus, one must select the right medium to grab the information about the selected property before buying it. Also, one should make sure that the property they are planning to buy is registered with the state’s real estate authority.
4. Buy a suitable home insurance plan
Another essential step of buying a house involves protecting the possession from unforeseen incidents and calamities. A home insurance policy can safeguard one financially in case the house and belongings suffer damages and losses caused due to natural calamities, theft, fire, etc. The home insurance policies assist the policyholder financially in repairing and rebuilding the property after severe mishaps.
Moreover, it provides coverage against the losses of belongings from the insured house or property. Here are some of the aspects covered in a home insurance plan:
- Destructions caused due to fires and explosions
- Damages are caused due to storms, floods, earthquakes, landslides, etc.
- Losses caused due to thefts and burglaries
- Damages caused due to an aircraft crash on the property
- Destructions and damages caused due to manmade disasters, etc.
5. Consider opting for a home loan
Many buyers plan to invest their savings in buying a property and then faces an extreme financial crisis. One can opt for a home loan to stay protected from such burdens. However, one must check out the eligibility criteria before applying for a home loan.
Factors such as existing debts, annual income, liabilities, credit score, etc., decide an applicant’s eligibility to get a home loan. Those planning to take a home loan can calculate the EMI amount to determine beforehand whether they can pay the loan without any extra burden. Buyers can take the help of a home loan EMI calculator to check out the EMI amount and proceed further.
Framing proper planning to choose the right property is essential. Furthermore, securing valuable possession with the right insurance plan is also important. One can opt for different home insurance plans, such as only content cover, building and content cover and only building cover, depending on their requirements and conveniences.