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How to Plan to Buy a House: Pro Tips to Consider
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By: priyanka narula
- February 12, 2025
Buying a house is considered among the most important milestones in life. It is an in-depth, transformational journey. The unique background, the colorful culture, and the dynamic real estate market make the home-buying process difficult. The process of buying a home will entail exploring through a myriad of choices and financial considerations, whether you are a novice homebuyer or a seasoned investor. This article has examined the essential variables to take into account when purchasing a property, as well as how to make a home-buying plan.
Tips to Consider When Planning to Buy a House
Here are some of the tips to consider when planning to buy a house:
Begin with Budgeting
Before taking a step towards buying a house, budget is the primary and significant concern. You must first evaluate your finances and assess how much you will be able to spend on buying, refurbishing, or decorating a house. You should also take into consideration the finances spent on maintaining your house. You can list out your financial commitments and establish a limit on how much you will go into debt when buying a home. It is usually best to have savings in place before committing to buying a house.
To stay within your budget, an EMI calculator is a useful online tool that you can use to calculate how much your house repayments would be each month. You can then add your monthly expenditure onto this, plus any emergency fund you wish to keep set aside to get an overall value for a loan that you will be comfortable with.
Check your CIBIL Score for Home Loan Eligibility
If you are to apply for a home loan to buy a house, first scrutinize whether or not you are in good financial standing. Your eligibility for a home loan and also getting a decent interest rate mainly depends on your CIBIL score. This 3-digit score is a numerical summary of your credit performance based on your borrowing and repayment history.
Your CIBIL score assumes greater levels of creditworthiness if you ensure prompt payment of credit card dues, timely repayments of loans, and no defaults. Regain control of your credit history, make timely payments, and keep borrowing within a reasonable limit to improve your CIBIL score.
Choose the Location with Care
The quality of your house is not the only significant factor; location is also of great importance. Before finalizing a specific area, you want to consider the amenities that you and your family will need. For instance, if you have growing children in your family, it is advisable to stay in areas that have the top schools in the city.
Or, if you are a working professional, you would prefer an area with good connectivity to key business hubs and the rest of the city. It is also important to consider the purpose of the house before selecting the locality. If you are looking to invest in real estate, choose one in a locality that will remain in demand and improve the resale value of the house.
Take Your Time To Find The Right Home
Because of the many home choices available to you, it may get hard to narrow down the right one. Therefore, they end up stuck with low-quality homes that are poorly constructed by mediocre developers because some simply buy the first option they get without coming back to check alternatives. Some also stick to their guns and, in the process, lose out on great opportunities for good homes.
That's why it pays to take your time in finding Grade A developers; such homes are built to a high standard and quality. You should have a very well-annotated list of what you want and will not compromise in your space. Other things to also consider are future family needs and the lifestyle you envision. Choosing a home is also about being around a community of like-minded individuals who are there to inspire you in growing your life.
Save for a Down Payment
Buying a home is a simple process, especially in this low-interest environment. However, the reality is quite different: to be eligible for a loan, at least 20% of the property value is required as a down payment. The Reserve Bank of India sets a loan limit of 80% of the property price for banks and lending institutions. In the case of a house worth ₹1 crore, this means an upfront payment of ₹20 lakhs is necessary.
Included in the list of these other costs are registration fees, loan application fees, and interior decoration costs, which together inflate the initial budget to nearly ₹40 lakhs. Although it appears intimidating now, the more you save on the down payment, the lower your lending needs will be, thereby allowing for lower EMIs and interest savings in the years to come. With some advance planning and savings, making that dream of homeownership a more attainable reality is as much possible.
Conclusion
Years of preparation and planning may be required before purchasing a home. Building a down payment and reducing your debt-to-income ratio (DTI) to help you qualify for the best mortgage rates are examples of long-term objectives that can help you get to homeownership. Although getting ready to purchase a home can seem like a financial marathon, it is helpful to divide the process into smaller, more manageable steps.