9 Financial Tips To Be Noted Before Buying Home
Are you going to purchase a home in the best locality? Buying a home is one of the most significant purchase in everyone lifetime and a milestone of the Indian dream. Buying a home is the good investment of money and receives better returns from it.
Buying home comes with real estate risks. You should carefully plan for your mortgage, and it should not be over leverage to you. Let we explore the financial concept must consider before entering the budget home.
Steady income stream:
The regular income of an individual will make a triumphant potential house owner. The stable and reliable income of individual will boost up a confident level of the moneylender. The 100 percent secure repayment capacity of the borrower is a vital factor for lending money.
Plan for sources of money:
The planning of financial position is essential for a buyer who prefers for a home loan. The financial obligation of present status should estimate before going for the dream home. The review should base on insurance amount, credit card installment, monthly family expenses, and other loans from a financial institution.
Estimate hidden charges:
The financial planning also includes the hidden fees that influence the purchase price of a home. These hidden charges include registration of house, a stamp duty of documents and maintenance. These hidden charges help the buyer to finalize the loan amount and repayment capacity.
The down payment on a property will help the bankers to estimate the creditability of borrower. The risk in repayment of a loan is lesser when down payment is more. The down payment should cover from 10 percent to 20 percent of property value. The zero down payments on investment will make a burden while repaying the monthly EMI. Thus, better decision is essential for down payment amount. Today almost all real estate projects in gurgaon or any metro city are coming up with the same option.
Increase credit score:
The credit score plays a vital role in deciding loan amount. A lender will check the credit capability of the applicant through credit score. The credit bureaus like TransUnion, CIBIL, etc., will advise the financial institution concerning credit score of an individual.
Better loan offer:
The market research will make us find better loan offer. The variety of financial institutions offer housing loan for regular income people as well as for business people. The most trusted privileges are an offer by nationalized banks with less interest rate. The following points should note before going on the home loan:
- Eligibility for a loan amount
- The percentage of interests
- Processing fee for a credit
- The amount of EMI paid.
- The method used in calculating EMI.
- The rate of interest is fixed or floating nature.
Best location of home:
The best site of the home is vital for easy accessibility. The house should be near to school, hospital, public transport, educational institute, markets, and connectivity to other locations. The future development of the site is also crucial for deciding best home.
A well experienced and expertise builder only will complete the project on time with high-quality construction. A proper background checkup of a builder is essential for the buyer to decide on a building project.
The sale of property ends when a legal formality wholly finalized with builders. The proper legal formality includes name transfer in electricity connection, water & sewage connection, details of tax payment, etc.,
Enjoy the happy home with your family and have a fun.