Everyone wants to buy their own home someday. And if you want to make this wish come true, you need to make solid plans. What type of house do you want to purchase? How much money do you need? Do you need to apply for a home loan online to buy your dream home? All of these questions are important. You need to get your budget ready, find a good location, and browse through the plans to make your dream come to fruition. Not sure where to start? No worries. Let’s go through every single step, one by one.
Calculate Your Budget:
Planning a realistic budget is the first thing you should do if you are planning to buy a home. You need to calculate how much you can fork out of your pocket to purchase a house. If you can’t afford to pay the total cost from your wallet, you will probably need to apply for a home loan. When taking a home loan, you should ensure that the monthly EMI during the loan tenure does not exceed 30% of your monthly income. This is one of the standard rules for picking the best housing loan.
Making a solid budget is a critical aspect, which you must never ignore if you’re planning to buy a home. If you overestimate your financial capabilities, it will put a huge financial burden on your family, and you might not be able to repay your loan. So, evaluate your income sources and make a clear budget even before thinking of owning a home.
Get a Solid Location:
Buying a house in the right location can make your family’s life a lot easier. So, before you get a home purchase loan, there are a few things you must consider to get a house in a solid location. Ask yourself these questions first:
- Is the location well-connected to your and your spouse’s workplace?
- Does the locality have a family-friendly neighborhood?
- Are there any good hospitals, schools, or colleges near your future home?
- What about the shops, supermarkets, training centers, and other facilities?
Evaluate everything properly to make sure that the location meets most of your requirements.
Check the Real Estate Trends:
Once you’re done shortlisting a few locations, it’s time to delve into the real estate trends of these localities. You need to understand what changes have occurred to the properties in the past few years to predict future trends.
For example, if you’re looking to buy a home this year, you should go through the real estate forecasts and predictions of the last 2-3 years. This way, you will have a clear idea of the localities that are becoming popular and properties from which you should stay away. You can also contact your bank and share the popular localities from which you’re planning to buy a home to get an instant home loan pre-approval.
This way, you can also use the loan pre-approval to instantly seal the deal with the real estate agent and get your dream home faster.
Figure Out the Kind of House You Want to Buy:
There are many types of homes, which you can choose from, depending on what you are looking for. You may want to get an apartment, while your spouse may be inclined to purchase a villa. You may also need a bigger house if you’re planning to have your parents live with you.
So, before you start your financial planning and get an instant home loan, there are a few aspects you need to consider to choose a perfect house. Here are a few things you need to weigh out to understand what kind of house you need:
- The total size of your house.
- Whether you prefer to live in a gated society.
- The amenities and facilities of your choice.
- The number of bedrooms you need.
- Whether you prefer an apartment complex or an independent house.
Get the Money Ready:
Once you sort out the previous steps and decide on what kind of house you want to buy, it’s time to get your finances ready. It’s good if you have saved enough money to buy your dream home right away. But most people, especially individuals who started their professional careers just a few years ago, need to apply for a housing loan to buy their homes.
Let’s take a look at the checklist to organize your finances and get an appropriate housing loan to get your own home.
1) Saving for the Down Payment:
Home loans make it easier for people to afford a house. However, to get the loan, you will still have to pay a large sum of money from your wallet. This sum of money is called the down payment. And it often revolves around 15 to 20 percent of the total price of your desired property.
For example, if the home you want to buy costs ₹1 Crore, you would need to pay around ₹15 lakh to ₹20 lakh upfront. Your home purchase loan will pay for the rest.
2) The Loan Repayment Tenure:
The tenure of the home loan directly affects the EMI of the loan, as well as the total amount of interest you will be paying to your bank. In simple words, if you opt for a longer tenure, you will have to pay less EMI every month. But you will be paying more money in interest.
So, if you can afford a higher EMI, you should get a loan with shorter tenure to avoid paying an exorbitantly high amount of money as the total interest of the loan. Contact the nearby lenders to get the best housing loan plan according to your needs.
Buying a house is like making a big dream come true for many of us. So, you should never slack in making an executable plan to purchase the house you want without hurting your wallet. Take the tips in this guide into consideration, get your finances ready, apply for a home loan online (Or offline) if you need to, and grab the keys to your dream house.