New Delhi: Planning to buy your dream home? Here are some great tips that will help you make the right decision. Be well prepared before making a big investment.
Building your own house is the biggest dream that people see when they cross adolescence and step out in the real world. It’s a huge investment. One which needs thorough preparation on the part of the buyer.
It is essential to be well prepared before making that big investment. Here are some tips that will simplify things for you.
Learn about the home buying process
Before you start hunting for your dream home, ensure you learn everything related to the home buying process. You can refer the articles and videos offered by the Department of Housing and Urban Development to get an in-depth knowledge about the process. No matter how much you read about the process, there will always be something that you are unaware of. It is advisable to gather as much as information possible from reliable sources.
Set a budget
It is important to determine the amount of money you are willing to spend on your new house. Set a budget that is within your reach. You can consult a lender who can have a look at your income and debts and guide you on which kind of loan will be suitable for you.
Also, consider the amount of money you have in-hand to make the down payment. If you don’t have much liquid cash, set a slightly lower goal. At no point, your home loan installment should exceed 35 to 36% of your monthly income.
Look for the right agent
Many sellers hire agents that help them sell their homes. These agents are paid on a commission basis by the seller. Always remember such agents will work for the interest of the seller and not the buyer. It is essential to hire an exclusive buyer agent, who will be able to find a better deal for you.
Learn more about the home that you are interested in
If you really like a home, inspect it thoroughly. Apart from seeing the overall condition of the home, inquire about things like availability of water, electricity, construction material, etc.
Also, request your agent to gather some more details of the home like whether it’s been on the market for long, is it overpriced, or does the house fall in a slow market area?
Get your finances ready
If you are planning to lend money, ensure you have 20% of the amount ready for the down payment. Lenders usually prefer giving money to people who can arrange this amount. If you can exceed this percentage, there are chances of you getting a higher amount of loan approved.
Place your offer
Once your finances are sorted, you can ask the agent or deal breaker to bid on the house. Before bidding, take advice from him on the initial offer and devise a plan on how to go about the buying process. Try to collect information on recent purchases in the neighborhood. In a slow market, the buyer has the upper hand, but if the market is hot, the seller may be at an advantage.
Enter contract
Have your agent or a lawyer review the contract that has been drafted. Clearly state that the deal is contingent upon:
1.)Your final inspection of the house that can be conducted 24 hours before closing the deal
2.)The condition of the home
3.) The amount of mortgage loan approved
It is okay to take your time before making the final decision as it is a one-time investment. At present, you can consider investing in lavish flats in cities like Mumbai, Chennai, and Pune.Apartments in Bannerghatta Road, Bengaluru have gained immense popularity in the recent times.
Corporate Comm India(CCI Newswire)
