A detailed guide for first time home buyers

Own New Home, these are the three magical words that every adult dreams to speak. It is the life goal for a large number of people. Generally, people start saving for their own homes at a very early stage of financial development. 

Are you thinking of buying your own home for the first time? What all aspects are you planning to consider?

A good location, cost, proximity of the property, lifestyle, community space, etc are a few factors that come into the mind of any first time buyer. Now, surely these are the factors that strike the initial thoughts of the buyer. To resolve these concerns, here is a list of things to consider to help first time buyers make the purchase process easy.

Budget

Costing is a major concern when it comes to buying a property. Hence a proper budget is required to be planned in order to get a better idea of the expenses you meet. Always ensure that it is just your first property not the last. So search for a property that meets your present expectations. You must guarantee that the property that you’re purchasing satisfies your present needs and is within your budget. As a property buyer, to understand the family’s present major needs is the best thing to consider and help you make a rightful decision.

Location

This is the second most important factor that matters, when it comes to purchasing a property. It is necessary to choose the right location. Take a look at the location and surrounding locality. Try and choose a place near and around the prime location of the city. Location will also have an impact on the resale value of the home. Choose wisely to make your home your best investment.

Rental rates

If your first home is your investment plan, rental rates also come under ‘must consider factors’ for buying a property. If you know the rental rate in the area, it helps you to choose the right property and the right location.

Good Resale Value

Reselling your first property might get a bit emotionally stressful but you should be ready for it. That is why while purchasing the house, resale value is a considerable factor before planning to invest in the property. 

This is one of the most neglected factors when people make their first purchase. Generally, people make the mistake of focusing solely on prime locality or the budget of the property. If you make a mistake choosing the wrong property, it is possible that the future sales price might be less than the other houses around it.

Loan eligibility

If you’re planning to get the finances for your home, you must check the home loan eligibility as well. Home loan eligibility depends on the repayment capacity, income, existing loans or debts and the age of the loan applicant. The company or bank that lends the money, offers an online service to offer a home loan eligibility calculator to calculate loan eligibility of the home loan borrower. The maximum amount of the loan sanctioned varies with banks and the eligibility criteria also may vary according to the bank or RBI regulations. With the rise in home rates, the loan eligibility for a borrower becomes stiffer.

Stamp Duty & Registration Fee

This is another important aspect to know about. Just like sales tax and income tax, stamp duty and registration fee are important parts of the new home buying process. When you plan your budget for purchasing a new property, you must know the rate and charges applicable in your city. If you are looking to know the market value of your property and stamp duty amount, you can contact the reckoner to locate your valuation zone and subzone. Find out the stamp duty applicable as per the market value. 

Additional Costs

As this is your first home buying experience, you will need help from a team of professionals. There are various additional costs such as fees or service charge by real estate agents, lenders or mortgage brokers, home inspector, land surveyor, lawyer or notary etc. Find out the maintenance charges, car parking charges etc. 

Property insurance

Property insurance secures your financial future if any damages occur to the property. The cost of a property insurance is relatively low and covers problems with the property title, certain damages or legal issues. There are a variety of home insurance policies to choose from, offering a variety of levels of protection. Choosing the right house insurance protects your property and makes the process of buying easy.

Wrap Up

Hope this guide is helpful for your planning about a first time home purchase. Feel free to reach us out if you face any issues with the same.