Your Step-By-Step Guide To Buying a House
Buying a house is a big moment in everyone’s lives. Obviously, there are considerable procedures and expenses to consider before one can buy a house. It is not a fast process. If you are opting for a home loan, the time for the documents to be verified will be taken up by the loan provider among other things. You have to be familiar with the procedures involved to ensure that the experience you have after buying the house is comfortable and smooth.
Steps to follow while buying a house
Purchasing a house includes multiple steps. The steps include financial and legal factors, as well. Here is a guideline to make the process easier for you.
Set the budget
Setting a budget is one of the primary steps while buying a house. Before making the final purchase, you must know how much you want to or can spend for the house. House is a dream purchase for most and hence, going overbudget is common. Setting a budget beforehand will help you to avoid going over your budget. Being prudent with the budget will help in repaying the loan faster and at lower interest rates.
You can either use your savings or take a home loan. Multiple banks and non-banking financial companies offer home loans at lucrative interest rates.
Find the property
After you have set a budget, it is time to go on a hunt for the house that suits you perfectly. You should consider location, distance from airports, railways and city prime while buying the house. The location of the property will also affect the price. So, if you don’t have a sky-high budget, you should avoid looking for houses in the city prime. Outskirts and adjacent areas have great potential to become a part of the city in a few years and have low property rates as well.
Find out rental rates and resale value
In the time of any emergency, instead of selling your house, you can rent it out or you may want a rental property. In any case, it is wise to find out the rental rates of the property you’re buying. Properties close to educational institutions, business hubs and transport zones have high rents.
Almost nobody looks into the resale value of a property before buying it, yet it is very important. Having a good estimated resale value on the property will save you from a loss if you plan to sell it.
Find out the stamp duty and registration fee
This is an important expense that is made over and above the purchase price of a house. These costs vary between different states and each state calculates it using their own formula. So it’s important to find out that cost before deciding on the house.
Make the payment
This part is where it boils down to. You ‘buy’ after you successfully pay for it. You can opt to pay for the property using your savings. If not, there are other ways to pay for house purchases. Banks and Non-Banking Finance Companies offer home loans to aid buyers in possessing their dream homes. To get a loan, you have to be eligible first. Loan eligibility depends upon your repayment capacity, past debts, and their repayment histories. You can use a home loan calculator to check out your eligibility and the amount you can expect to get but this amount isn’t final as the loan amount depends on the value of the property itself. A healthy loan repayment history puts you in a better position to negotiate a suitable home loan interest rate, tenure and the EMIs.
Get the property insured
It is absolutely essential to get your house insured. Proper house insurance can be a solid safeguard for your finances if some unfortunate damages occur to your property in the future. It will save you from uncertain expenses. The cost to get your property insured is relatively low if you consider the financial drain any dispute over property title, legal issues or damage will cause.
Buying a house is not an easy thing to do, but if you are being smart about it by acquainting yourself with the details before the purchase, the experience will be smooth. It is a matter that involves a lot of money, so the parties you are dealing with must be trustworthy. The objective of this guide is to help you buy a house with minimum hassle. Good luck with your house hunting!