Deciding to buy a home can be quite a demanding task for anyone. This task becomes all the more daunting if you are a first time home buyer. There are so many things to consider: locality, builder, ready home or an apartment or a plot on which to construct your home, size of the home, availability of funds and timing.
Well, we know what your predicament is and we are here to help you through the home buying process with the guide that we have put out for you. We have touched upon a variety of factors including home loan tax benefits and the home loan process.
The first thing you need to do is to make up your mind on the purpose of buying your home. If you are buying the home for you to stay now and perhaps later after retirement then you need to consider factors that can support this goal. On the other hand, if you are buying a home for the first time as a form of investment then you have to look at some other factors. Make sure you know the purpose for which you are buying the home.
Next, based on the purpose for which you are buying the home you can then consider the locality where you want to buy the home. If it is for your own use then you would prefer a quiet place with modern facilities and amenities. If it is for investment then you would probably look for a home in a locality which would appreciate rapidly and fetch you attractive rental income.
The next step would involve assessing the market prices and determining how much you want to spend considering your present and future financial situation. You will consider your financial strength and decide how much you can afford for the purchase. If there is a gap between the amounts you can afford and the amount you need it can be made up by availing a home loan. You can also consider the home loan tax benefits that are available to first time home buyers which can help you finalize your budget. NBFCs like Tata Capital help you sail through this process effortlessly.
The next steps will involve choices – broker, locality, builder and lender. These are the steps which will tax you. But, not to worry as the guide will help you.
Whether it is the broker, locality, builder or lender, you need to ascertain the reputation and credentials before you finally choose one. Check the antecedents through your family, friends and your own research. Thoroughly examine and scrutinize the websites and ask for clarifications on all relevant issues. Based on the findings of your research you can zero in on the broker, locality, builder and lender.
Remember, you can often dispense with the broker if you keep your eyes open and opt for a builder/locality when you peruse the huge number of advertisements that are put out by real estate stakeholders. Sometimes, lenders tie-up with builders offering various properties with attractive discounts and benefits which could include deferred payments, free gifts and prompt delivery.
Once you have finalized the property the next step would be to obtain the relevant documents from the builder and scrutinize it carefully. You may have to take the help of a qualified expert to prove the provenance of the property. If you are availing a home loan, you could also get corroboration from lenders as they will have a panel of experts to advise them on the property you buy. Make sure you check that the builder has obtained all approvals from statutory authorities. With new guidelines kicking in, you should look for plan sanction, RERA certificate, occupation certificate, encumbrance certificate, latest taxes paid receipts and other clearances that would have a bearing on your purchase. You should also check if there are any cases pending against the builder. Remember, before you sign on the dotted line look for all t’s to be crossed and all I’s to be dotted. It is always good to undertake this activity as it can help you avoid future complications.
If you are availing a home loan, choose a reputed lender and have a discussion with its representative to arrive at the terms of the home loan that can be beneficial to you. You can know more about the home loan process and speak to Tata Capital’s representative. Ensure you have a high credit score so that you can negotiate good terms on the home loan amount, interest and tenure. Remember, you can choose your own EMI option that can meet your financial situation appropriately. You must read the small print here too to avoid any future surprises. However, if you pay your EMIs promptly, you have nothing to worry.
Now, don’t you think you are much wiser after you gone through the guide? Remember, this guide is indicative and not exhaustive. But, if you expand on the factors that we have highlighted and go into depth you will have a wonderful time acquiring your first home.
To learn about the home loan eligibility and its process you can visit our website.