You may be confused about whether to buy your own home or continue renting. The thought of searching for and financing your first home might seem daunting. After all, buying your own home is not a simple process of search, like, and click, as with online shopping. But it can be less stressful if you follow a step-by-step process when buying your own home.
You may not have enough money to buy a house yet. Don’t worry. You can opt for a home loan as a financing solution. You could talk to representatives from banks or non-banking financial companies (NBFCs). They will guide you through the home loan process. They will specify the documents required for home loan, for example. You will need to submit these to get loan approval.
Here is an easy guide to help you buy your first home:
1. Amount to Borrow:
Approach different lenders to find out exactly how much you can get as a loan. They will tell you the loan amount based on your current monthly income. They will also factor in your credit score. Your next step will be to assess if you can afford the EMIs against that loan. For instance, lenders like Bajaj Finserv offer home loans of up to Rs.3 crore. But when taking a loan, you must assess whether you can repay it.
2. Government Schemes:
You should check the various schemes offered by the government. These aim to help citizens fulfill their dreams of having their own home. For example, the Pradhan Mantri Awas Yojana (PMAY) offers a subsidy on the home loan interest rate. This is available to applicants from specific income groups. If you fall under one of the given categories, you can get a subsidy of between 3–6.5% on the home loan interest rate. Approach a lender registered with the PMAY to check your home loan eligibility under this scheme.
3. Finding a Home:
Prepare a checklist of all your requirements for a house. Do you want to stay close to the town or your office? Then start contacting agents around the area you prefer. Do you have parents or children staying with you? Then a place with a community area and a playground might be a priority for you. Many new apartment complexes have facilities like swimming pools, club houses, badminton court, and special play-areas for toddlers. Proximity to schools and hospitals may also be on your checklist.
This checklist will help you a lot when you start looking for a house. Share this list with the agents. Then they will not waste your time by showing properties that do not fulfill these requirements.
- Register the house under your name when you make your first installment payment.
- Before that, check all the government-approved letters and plans from the builders.
- Ensure that they are authorized to build on that land.
- Also, check the parking space allocated to you.
Doing due diligence is important. In case of any legal dispute, you will then be eligible to file a case against the builder. It is always good to be safe than sorry.
There are so many new apartments and houses coming up. It might be overwhelming to visit each place. However, it is better to look around closely and do your research before closing a deal. If you have any doubts, contact your lender for clarification.
If you are a first-timer, don’t get worried by the home loan documents list. Check the home loan eligibility conditions thoroughly and ensure you submit all the required documents. If you miss some vital documentation, your application may be rejected. So, go through the home loan process carefully. Do all you can to afford your dream home.