Planning to buy a house? Read on.
Buying your first house is a milestone. But it is also a significant financial decision that can be just as nerve-wracking as it is thrilling. And if you’re ready to become a homeowner, you might have kick-started your house hunting process already, spending days researching and saving properties online.
However, property investment for beginners doesn’t come easy. You have to make a lot of critical decisions before you can find “the one”. From location, budget, design, documentation to financing options and more, you must consider many things. But even then, you might not be what you expected.
So, before you start hunting real estate investment, create a priority checklist and go in with reasonable expectations. Because when buying a property, you will have to face a few hiccups. When you do, here’s how you can handle them better.
1. Finding the right property
Expectations – You will love it right away
Reality – Take your time to research
As you start looking for suitable real estate investment, you will realise that there are a lot of details you need to look into. Finding the right house takes a lot of your time and energy. So, pay close attention to any issues in the build or interior of the house. Do check for other critical aspects like the plumbing, roofing, wiring, ventilation, and common wear and tear, among other things.
It is always wise to do your research and give enough time to the house-hunting process. To do so, you can make good use of the several online websites and apps that allow you to look at properties without stepping out of your home.
2. Meeting your needs
Expectations – You will get everything you are looking for
Reality – You will have to make compromises
Unless you are building and designing a new house, it is highly unlikely that you will get all the essentials and features you’ve always wanted in your house. For instance, your ‘perfect’ house comes with a big balcony, bigger rooms, and ample storage space, but is located in a place farther from your work. Or when it is the right location and amenities, it might be a little over budget.
Yes, buying a property can be a tiresome process, unless you plan better. Do make a list of the amenities you desire but also be ready to make compromises wherever possible – be it with budget, features, location, or design.
3. The buying process
Expectations – With all the apps and websites, you don’t need anyone else
Reality – A property agent can help you better with detailed information
While property websites and apps can help you search for the ideal property virtually, involving a real estate agent is better. Property investment for beginners becomes much simpler with the support of someone who knows the industry inside out. They can help you find the available listings, schedule viewings, conduct neighbourhood research, and even manage the paperwork for you.
Moreover, with their experience and knowledge, they can negotiate with the seller to get you the best deal on the property of your choice.
4. Home loans
Expectations – It is a never-ending process
Reality – No way! It is super easy and convenient
When it comes to real estate investing for beginners, many believe that opting for a housing loan is a complicated process. While yes, finding the right type of home loan that suits your affordability can be overwhelming; applying for a loan doesn’t have to be.
With several lenders offering an online application process, purchasing your dream home is now easier than ever. You can compare loans based on processing fees, interest rates, approval time, repayment flexibility, among other things. After which, you can easily apply with your preferred lender and get your home loan in no time.
5. Loan approval
Expectations – You will have to wait long for loan approval
Reality – You can begin house hunting with a pre-approved loan
When making real estate investment using a loan, there’s always the concern of whether the loan will get approved and be disbursed in time. The slightest issues in the application process can put your plans of buying a property on the backburner. In such a situation, getting pre-approved for a home loan can become your saving grace.
Pre-qualification is a simple process. The lender will determine your eligibility for the loan based on your credit history, financial standing, and repayment history. Based on this, the lender will make you a loan offer, but the final disbursal is subject to choosing the property. A pre-approved home loan can give you an upper hand as it establishes you as a serious buyer in front of the lender. Not to mention, the loan processing and approval process will be much faster.
However, a pre-approved loan does not guarantee final loan approval. It only depends on the final property and paperwork checks.
Over to you
All set to make your real estate investment? By doing comprehensive research, prioritising your needs, comparing finance options, and taking expert advice, you can make the process a walk in the park. After all, real estate investing for beginners is not as easy as it may seem.
If you are on the property hunt and need help to finance your dream home, search no more & consider Tata Capital housing loan. Enjoy flexible repayment options at competitive interest rates and minimal documentation. Visit our website to know more.