Given the low home loan interest rates and more or less stagnant property prices, now is a great time to buy your dream abode. With that said, purchasing a house is a lengthy, complicated process involving a lot of steps and significant risks, thanks to the large sums of money involved.

To help you make informed home buying decisions, here’s a step-by-step guide:

How to buy a house: a quick guide

Step 1: Set a budget

From income and expenditure to debt repayments, make a note of all your finances. Accordingly, decide an amount you can set aside and take a loanto cover the remaining amount. Even if you have a large enough corpus, it’s best to borrow since you get to keep your savings intact.

Additionally, you could use a home loan EMI calculator to plan your repayments. Keep in mind the loan will roughly cover 80% of the property cost. So, you’ll have to arrange the remaining 20% and make a down payment.

Step 2: Choose the right location for your property

While choosing a suitable location, take a good look at your current needs, and peek a few years into the future. How’s the locality? What facilities do you want accessible? How will the neighbourhood develop over the coming years?

Consider these questions and choose a location accordingly. Since property purchase is an investment, also consider a location with homes having a good resale value.

Additional Read: 7 Questions To Ask When Buying A House

Step 3: Select the right lender

There’s a world of home loan lenders out there, each offering exciting terms and exclusive privileges. So it’s pretty easy to get overwhelmed with all the offers. As a rule of thumb, go with lenders offering low interest rates.

Also, make sure that processing fees are low and that you meet all the eligibility criteria beforehand. Applying without doing so can get your application rejected and lower your credit score, making it more difficult to get a loan on time.

In a nutshell, shop around and conduct proper research.

Step 4: Registration charges and stamp duty

After you have booked the property and have your loan approved, you must pay the registration and stamp duty charges, according to the regulations of your state or district.

Step 5: Consider extra charges

While buying a home, you might need the services of professionals like real estate agents, home inspectors, lenders, lawyers, land surveyors, and more. Naturally, you’ll need to pay them for their services. Additionally, property charges such as maintenance, parking charges, etc., may also crop up. You might also want to renovate your home. So, take these into account in your budget.

Step 6: Insurance for your property

Property insurance covers property damage, property title, and legal issues. Many insurance policies offering varying levels of protection are available, and costs are low. So, choose a resource you can trust according to your necessities.

Additional Read: Your Detailed Guide for Buying a House in Top Indian Cities

Over to you

With this step-by-step guide, you can simplify your home buying process and purchase your dream home in no time.

Looking for a loan to buy a house? Turn to Tata Capital – India’s most trusted finance partner. Apply for our loans and enjoy competitive interest rates, easy repayment options, flexi-EMI schemes, and more today!

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