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Things All First-Time Home Buyers Must Know

Things All First-Time Home Buyers Must Know

Are you planning to turn your homeowner’s dream into a reality? At first glance, the cost, paperwork, and formalities of buying your first house may seem daunting. But we’re here to help.

In this blog, we will break down the various aspects of buying a house and everything a first-time home buyer must know.

1. Budget

Your budget is the first thing you must decide in your homebuyer journey. Most financial institutions have online home loan eligibility calculator that give you a good idea of how big a budget you can afford. Your loan eligibility is usually limited to a monthly EMI of half your monthly income. But you can afford considerably more if you buy a house with a spouse or parent.

Home loans only cover 75-90% of your property’s total value, so you will have to pay for the rest as a down payment. You must also consider additional costs like registration charges, stamp duties, etc., that could go as high as 11% or more. So consider all your income sources to determine a realistic budget while maintaining your lifestyle. And most importantly, stick to it.

2. Property type

In today’s real estate market, there are many kinds of houses available, ranging from studio apartments to bungalows. While your budget may rule out certain property types, you will still have plenty of choices when it comes to buying an apartment or an individual house. You can decide on the house size, the number of rooms, etc., based on your needs.

3. Location

If you’re buying a house to occupy immediately with your family, choose a location that is well-connected, in a good neighbourhood, and has easy access to schools, hospitals, markets, and entertainment centres. However, your budget and desired property type can restrict your location. For example, finding an individual house in a metro within a tight budget may be difficult. So don’t hesitate to experiment with different combinations of the location and property type as long as they meet your requirements.

4. Amenities

If you have kids, you may want a park or a play area inside your apartment complex and possibly strict security measures. Some gated communities have a school, hospital, daycare, park, swimming pool, gym, basketball court, etc. So make a list of your needs, nice-to-haves, and negotiables. This will help you understand what you’re looking for in a house and narrow your search.

5. Builder

Buying a house is a long-term commitment. And whether or not you’re the first buyer of the property, getting it from a credible builder can go a long way. As first-time homebuyers, you must be assured of the property’s construction quality and adherence to government regulations. If you’re taking a home loan, accessing the builder’s credibility becomes easier, bringing us to the last point.

6. Home loan

Getting a home loan for a first-time buyer’s house is almost inevitable. When you approach a lender for a home loan, they run thorough checks of your property and its documents to verify its legality before approving your loan. As a first-time homebuyer, this helps you get an expert’s opinion on your property without hassle. Then, before selecting a lender, compare different options in the market and choose one that suits you best. To accelerate the process, select the property and line up your down payment before you apply for the loan. You can also get pre-approval from your lender.

Wrapping Up

Buying a house is a huge commitment that must not be taken lightly. So prepare and plan your finances carefully to buy your dream home.

At Tata Capital, we ensure your first home-buying journey is hassle-free. Our affordable home loans offer maximum flexibility to help you realize your home owners’ dream without straining your finances. Visit our website today to know more!

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