Being informed is very important before making a huge financial decision. So educating yourself about what you are getting into before buying a property matters. Here are some major advises to help you go through a smooth property buying process.
1. Get a copy of your credit report:
Getting a copy of the credit report from credit bureau is a must wherein the credit bureaus are run by the Government. Checking the report for errors is also a must so as to avoid any dispute at the time of documentation.
2. Check your credit score:
Credit score is important when it comes to getting approved for a mortgage and make sure that your score is as high as possible before applying for a loan. Pay all your bills on time, every time.
3. Get pre-approved before house hunting:
Pre-approval for a mortgage is mandatory before house hunting. A loan officer will approve your loan based on the credit score which will decide whether you can re-pay back the money on time or not.
4. Qualify loan process:
There is a standard process in qualifying for a loan. Mortgage has maximum loan to value ratio of 80% upto Rs.30 lakhs. Down payment assistance programs are also available which can minimize your burden of paying back the money at once.
5. Know your Down payment options:
The amount of down payment needed to buy a house will depend on the type of mortgage you get. First time home buyers typically have less money in savings which is why low and no down payment home loans are so popular. If you do have at least 20% for a down payment, then you can avoid mortgage insurance by using a conventional mortgage.
6. Hire an experienced real estate agent:
Generally first time buyers believe they can save money by not hiring an agent. The agents have clear knowledge about the buying procedure which can run smoothly without any difficulty.
7. Budget for homeownership costs:
There are many costs invoiced in getting a mortgage besides the house. There’s homeowners insurance, mortgage insurance and closing costs. If you have at least 20% to put down, you should look into conventional loan. They donot require private mortgage insurance if you put 20% or more down.
8. Know your Debt to income ratio:
It is the amount of your monthly income compared to your monthly debt payment obligations. This includes items such as credit card payments, car loans and all other loans.
9. Check for First time home buyer Programs and Grants:
The Government has extended interest subsidy schemes for first time home buyers who have annual income between Rs.6 lakhs and Rs.18 lakhs. This will enable them to avail up a financial assistance of Rs.2.5 lakhs from Central Government which they may use for down payment while booking, construction or purchasing the flat.
10. Know the loan schemes available:
When you want to buy a house, applying for a consumer credit will assist you to a good extent. It provides you the backup and helps you purchase the house for yourself and your favorite ones. These loans typically go along with longer tenures (20 years to 30 years). The rates offered by a number of the popular banks in India with their home loans begin at 8.30%. Your credit score is checked before the loan request is approved by the investor. If you have got a decent credit score, there’s a good likelihood that you simply are going to be ready to relish lower rates of interest along with your consumer credit. However, these loans may be used for home renovations, home extensions, getting land property, under-construction homes, etc.
Buying a house for the primary time doesn’t ought to be alarming, follow these ten tips and ensure you’re employed with a good land agent and loan officer and therefore the method ought to run swimmingly. Check your credit score, rent an honest land agent, compare loan offers from multiple lenders and don’t apply for brand spanking new credit throughout the house shopping for method. As long as you follow all the ideas during this article you’ll be able to accomplish the dream with no headaches.
Tick these factors off your list while you go property hunting to ensure that you find the perfect home for you and your loved ones.
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