Buying a home the first time around stirs up a multitude of emotions. Exhaustion and excitement – you may feel all of these at once, and for good reasons.

However much we may appreciate it, you can’t buy a house by adding it to your cart or flipping through a catalogue. It requires months, or even years, of intelligent, strategic planning and thoughtful financial decisions.

So, if you’re ready to say hello to your dream haven, here are some tips to help you get started.

Know your needs

To get a home aligned with your needs and expectations, you must first examine your current lifestyle and figure out what type of neighbourhood you see yourself settling in.

Suburban, urban, or rural? Urban and suburban locales often provide excellent social, educational, and career opportunities, ideal for raising a family and connecting with your local community.

However, if you wish to distance yourself from the hubbub of metropolitan life, a house in a rural setting would serve you well. Before selecting one, make sure to drive around these locales, evaluate their connectivity, and explore the nearby schools, grocery stores, hospitals, and other essential places.

Choose a financier

Once you have zeroed in on your desired property location, it’s time to sort your finances. Considering the fluctuating real estate prices, you can easily use a housing loan to purchase your dream home. The first step in getting a loan is to select a reliable lending institution.

Conduct thorough research online and compare different lenders. Choose one that offers a blend of easy eligibility, repayment flexibility, extended tenures, swift processing, and affordable home loan interest rates.

Additional Read: Common Challenges Faced by First-time Homebuyers

Fulfil loan eligibility requirements

Before applying for home finance, check the loan eligibility criteria of your preferred lender. Not meeting the requirements after applying reduces your chances of loan approval and can hurt your credit score. The home loan eligibility typically comprises work experience, CIBIL score, age, monthly income, etc.

Improve your credit score

The credit score is one of the first thing lenders take note of. So, having a high credit score, preferably 750 or more, can help establish your creditworthiness and improve your chances of loan approval. With an excellent credit score, you can also qualify for attractive home loan interest rates.

The best way to boost your credit score is to close ongoing loans on time and regularly pay all your credit card bills. Also, remember to keep a tab on your credit score. It allows you to iron out any errors or discrepancies if and when they crop up.

Additional Read: Do Credit Scores Affect Your Home Loans?

Calculate your EMIs beforehand

Before applying for housing finance, make a repayment plan by evaluating your EMI affordability. Nowadays, you can use a home loan EMI calculator to compute your EMIs against different interest rates, tenures, and down payment amounts. You can also figure out the interest payable in advance.

Parting thoughts

Lack of financial know-how and research is the main reason why buying a home for the first time can seem daunting. So, if you are looking for tailor-made housing finance options, turn to Tata Capital. Get a home loan worth Rs. 5 crores and extended tenures up to 30 years. Check your eligibility and apply today!

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