Looking to purchase your first-ever home but lack knowledge about the complex home-buying process?
We’re here to help!
Expert guidance is vital, especially for first-time home buyers, to make the right decisions regarding staying within their financial bandwidth, meeting family needs, etc.
Keeping in mind the extensive home-buying process, we have come up with this informative blog to assist you in navigating it in a seamless & hassle-free manner.
Whether it be key elements to consider or first-time home buyer tips & advice, this blog will provide you with a thorough understanding of the best practices to follow.
Important Elements to Consider Before Purchasing a Home
- Take into account your budget and no. of family members before deciding the house type & size
- Check the reputation of the builder, RERA registration and any pending litigations involving the property
- Make sure the location has access to basic amenities like hospitals, schools, etc., and is convenient for all family members
- Assess whether you can afford to pay for amenities like swimming pool, gymnasium, etc., via high maintenance in a high-rise building
- Look for a flat in a low-rise building if you have a tight budget
- Opt for a lower floor flat in case of a stringent budget
- Apply for a home loan to finance the purchase
First-Time Home Buyer Tips
1) Find out your budget
Start with assessing your financial health by listing down your savings, monthly expenses, emergency funds, any financial liabilities, etc. This will help you understand whether you need a home loan and if yes, then how much EMI you can afford to pay each month. Come up with a rough estimate of your overall budget, price range and how much down payment you can make.
2) Check your credit score and improve it
For people requiring a home loan to buy a house, their credit score is very important. This is because it determines their home loan eligibility and the interest rates being offered by lenders like banks, housing finance companies, etc.
One can check their credit score by visiting the website www.cibil.com and requesting their CIBIL report by entering personal details, completing verification and paying the fee. Other ways to find the credit score include visiting various websites & apps providing the free credit score check feature.
Once you know your credit score, the next step will be to try improving it as much as possible. This can be done by regularly paying all bills in a timely manner, maintaining low credit card balances, paying EMIs on time, etc.
3) Never cross your budget
The lure of a big house in a posh setting with lots of luxurious amenities may seem fascinating, but crossing your budget for it can cause severe financial issues in the long term. So make sure to stay within your price range and not become greedy.
4) Avoid opting for a longer repayment tenure
Longer repayment tenures may seem attractive due to their comparatively low EMIs, but they include paying significantly higher interest over time. Thus, it’s well-advised to look for shorter repayment tenures whose EMIs you can manage to pay every month.
5) Benefit from government housing schemes
For first-time home buyers, government affordable housing schemes such as the Pradhan Mantri Awas Yojana (PMAY) can help save substantial amounts of money. So check your eligibility for these schemes and take advantage of them.
1) What is the best loan option for first-time buyers?
Home loan from reputed banks and housing finance companies is the best loan option for first-time home buyers.
2) What is the best time to take a home loan?
Opting for a home loan when the interest rates are comparatively low is the best time to take a home loan.
A Guide to First-Time Home Buyers in India for 2023
Navigate the home-buying process smoothly with the best first-time home buyer tips & advice and key elements to consider before purchasing a home.