A Guide for First Time Home Buyers

Buying a home is a dream for many. However, it is not as simple as just picking a home, making the payment and moving in. There are a lot of procedures that go into buying a home.  If you are apprehensive about these procedures, we got you covered. Here is a guide for first time home buyers that will make the process of home buying easy.

Assess your needs

The initial step in the guide for first time home buyers is to ask yourself why you want to buy the house. If you are planning to buy a house to live there, think about your future needs and choose the house. On the other hand, if you are buying a house purely for investment, think about the locality and the capital appreciation you could get from it.

Work out a budget

One of the most important facets of the home buying process is deciding a budget for your future home. Once you decide on a budget, shortlist properties that are within the set budget. While the cost of the property is the biggest expense, you also need to account for paperwork such as registration and other taxes that you will have to pay. Additionally, always include the cost of designing the interiors while preparing the budget.  

Shop for a home loan

Most homes are bought through home loans these days. Picking the right type of loan will save you a lot of time and effort. Before you apply for a home loan, is important to understand the various processes that go into it. Banks and financial institutions look into numerous aspects before sanctioning the home loan. Here are some of the most important things to consider:

CIBIL Score – It is a credit score, which is analysed taking into account your credit history Make sure you have a credit score of at least 620.

The right documents – Government documents such as identity proof, address proof and financial documents such as bank statements and Form 16 need to be furnished while applying for the home loan.

Additionally, conduct a detailed research on the rate of interest each bank has to offer and the tenure of the loan. Each bank has a different rate of interest, and it starts from around 8.35%.  This number could go up depending on your credit score.

Banks also offer you the flexibility of choosing the type of interest;  fixed rate and floating rate of interest.

Fixed rate – If you were to opt for a fixed rate of interest, the equated monthly instalment (EMI) would remain the same throughout the loan tenure until the loan is paid off.

Floating rate – In the case of a floating rate of interest, the rate of interest varies based on market fluctuations. It is advisable to choose this only if you anticipate depreciation in the value backed by concrete evidence.

Find a great location for the house   

Whether you are buying the home for investment or moving in, location plays a key role. Making sure your home has easy and quick access to schools, hospitals and restaurants is a major factor to consider while picking the location. It is a good idea to purchase a property that has great infrastructure facilities and accessibility to the rest of the city.

Visit the site

Once you shortlist properties and location, it is important to visit the site of the property before making the payment. When you visit the site, you will also be able to understand the site progress and quality of materials used, especially if you are buying an under construction apartment. In case you are going for a ready-to-occupy home, it is the site visit that will help realise whether or not the amenities that were promised on paper are there in actuality. If you are an NRI investing in India realty and coming down for a site visit is not possible, ensure you ask your family or friends check for you.

Check the credibility of the builder

The guide for first home buyers is incomplete without the pointer of putting your trust in the right builder. The process of home buying is long and trusting the right builder can make or break your experience. Before settling down on a developer, check their past projects, the delivery of those projects and quality of construction. You can also talk to people who have bought projects from them in the past. A renowned and credible builder such as Legacy will help you through the process of buying home.

Pay attention to documentation

There are plenty of legal documents without which buying a home will be invalid. As a home buyer, it is important to know what all these documents are and verify the same with the same. Some of the documents are:

Sale Deed – The sales deed is a document that ensures the sale of the property. Make sure you get a copy of the sales deed as it is evidence that buyer and seller have complied with the terms and conditions.

Registration Document – The registration document is proof of the property being transferred to your name. Possession is complete only after signing this document. You are required to pay a stamp duty which is levied by the government on all property transactions.

Allotment Letter

The allotment letter will be given to you by the builder with all details about the house, such as the door number, availability to parking, the floor of the apartment and all other facilities. If you have requested for a particular apartment, then ensure that you mention it in the initial application form.

With our comprehensive guide to first time home buyers, your home buying experience will become smooth and hassle-free. Visit Legacy today and find your dream home.