We all dream of buying our own house. It’s a major milestone in anybody’s life and a transformative experience. However, buying a home demands a lot of research, patience, strategic planning, and considerations, especially in a country like India, which has vibrant cultures, diverse landscapes, and a dynamic real estate market.
You need to have a clear understanding of your finances, market, investments, and more because it’s a lifetime decision that you probably can’t reverse. As it involves a huge financial decision and a competitive market, it is a daunting task that requires you to navigate through ample legalities, choices, and whatnot.
However, meticulous planning and the right guidance can help you accomplish this goal without hassle. Hence, we are here with a step-by-step guide to making a wise and informed decision while buying a dream house. So, let’s get started and see how to buy a home.
Also read: Top 7 Tips for Investing in Real Estate Properties
1. Start with Budgeting
This is one of the most crucial steps in your home-buying process. Before you finalize a house, you need to assess your finances to find out how much you can spend on the house, including renovation and decorations, so you don’t go overboard.
Also, make sure you don’t have to compromise on other financial commitments, and that you stay within your means. We always recommend having enough savings before deciding to buy a home. You can also opt for a home loan. As buying a home is a big decision, you must decide on the amount that suits your budget while satisfying your needs.
2. Zero In On the Location and Property Type
Apart from the finances, the location and property type are also a key consideration to learn how to get a home. You need to pick the area you want to live in after considering amenities, access to necessary facilities, your family requirements, and other factors. For example, if you have a school-going kid, you need to live in an area with close proximity to the best schools. Or, if you are a working professional, choose an area with good connectivity to business hubs. Also, based on your budget and family, choose the property type, whether you want to buy a flat, an independent house, or a plot.
3. Study the Market
Now that you know your budget and location, it’s time to study the housing market, which means real estate forecasts for the city. This will help you see the long-term investment potential of your home and help you make an informed decision.
Getting familiar with the housing market will also help you identify areas in demand. Consult your real estate agent or industry experts to learn about the market and what to expect in the future.
4. Check your CIBIL Score for Home Loan Eligibility
Not everyone can afford to buy a home on a down payment. Hence, we have an option for a home loan to make things easier and more affordable. Ensure that you have a strong financial standing and check your eligibility to apply for the loan. Loan eligibility may vary based on your CIBIL score, which is a numeric summary of your credit calculated based on your borrowing and repayment history. Also, each bank can have different criteria based on the RBI regulations. Age, credit score, salary, and work experience can also affect the eligibility criteria.
After checking your eligibility, calculate the EMI to pay during a decided tenure. The shorter the tenure, the higher the EMI and vice-versa. As a rule of thumb, your EMI should not exceed 40% of your monthly salary.
Also read: Explore the Reasons You Should Consider Living in Jodhpur
5. Find The Right Home
Once you start exploring houses, you will be overwhelmed by a plethora of options, making it challenging for you to narrow down the right ones for you. But this also doesn’t mean you approve of the first house you see. The first rule of how to buy a new home is to never compromise on the quality.
Hence, take time to research and evaluate. Find the number of rooms you need and verify safety measures and amenities. Have a long-term perspective while considering different factors. Consider your future needs and the lifestyle you envision. Prepare a list of non-negotiable things for your home, such as a playground for your kids, schools, office, outdoor space, etc.
Your checklist must include proximity to grocery stores, hospitals, schools/colleges, and greenery, which are essential factors for a family. You must understand that a larger property will need more money and work. So, pick your home depending on the cost and effort you are ready to put in.
6. Additional Costs
As you purchase a house and complete legal formalities, you will realize there are some additional costs, such as registration charges, sales tax, stamp duty, income tax, brokers, lawyers, and a few more. Some of these charges are collected by the government of India, while some by your agent.
Calculate your registration and stamp duty charges, which can vary for every state as some states have higher rates than others. You can create a fund to manage these charges. There can be society maintenance charges, too, if you buy a flat. Go through all the legal documents and make sure you have all the required documents before buying a house.
7. Possession and Registration
This is the final step, the one you have been waiting for years. Getting possession of your dream home. However, don’t overlook a few necessary tasks amidst your excitement. Once you buy the home, you must have documents like a commencement certificate, Title Deed, sale agreement, and occupancy certificate. Get your property registered in your name in the local municipal records, which will also require the seller to transfer the property in your name, and then it will be legally transferred to you.
Final Thoughts
Buying a home is a huge step; a dream for many. So, you can never be extra cautious. Seek all the help you need and consider each factor, no matter how small it seems. Buy a home only when you think it’s the right time; else, wait for favorable market conditions. Hope you enjoyed reading this blog on how to buy a house. For more such informative blogs, stay tuned!.
