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What You Should Consider Before Buying a Home

Hi there! If you are planning to buy your dream home, it is likely that you are excited and nervous at the same time. After all, it isn't a cakewalk. 

There is an enormous checklist to consider before buying a home so that you don't end up becoming a victim of any scam. The good news is, you don't have to go anywhere else to find it, mymoneykarma has consolidated the entire checklist for you. Here it is:

Check Your Eligibility for Home Loan

Pull out your credit report through mymoneykarma to readily assess your credit-worthiness. If your credit score is low, then banks may not approve your home loan, or you may have to borrow it at a high interest rate.

Thus, this step should be the first on your checklist before you start house hunting. It will help in negotiating with the bank for a low interest rate.

Find Out Which Kind of Property Serves Your Purpose

A property buyer has three options: resale properties, under-construction homes, and ready-to-move.

A resale property can be apt for you under these three circumstances:

  • You want to buy a property that is already furnished by another owner.

  • A resale property is available on a good deal as the owner has an urgent requirement.

  • You are not getting a new ready-to-move-in house/apartment in your preferred location.

An under-construction property can be suitable for you, if -

  • You are ready to pay 5% GST on it (applicable for cost above Rs. 45 Lakhs).

  • You can manage to pay rent and EMI at the same time.

  • The builder is providing a substantial discount.

  • The builder is trustworthy and ready to deliver on time. 

Ready to move in properties are the best, if -

  • You want to touch and feel the product.

  • You want to decide based on the feedback from the existing residents.

  • You want to save on rent.

Go for a RERA Registered Property

Whichever the type of property you choose, try not to jump the gun while finalizing it even if you are promised a huge discount.

First of all, check whether the property is registered on the website of RERA( Real Estate Regulation and Development Act 2016) or not. RERA has eased the complexity of property buying by doing most of the legwork. 

Hence, if you don't get the details of the developer on its website, it may indicate that the developer hasn't submitted the necessary documents to the authority for approval.

Tracking the history of the delivered projects of a developer can also help you to determine its credibility.

Check for Affordability 

Once you select from the list of these three types of properties, use the home loan calculator on mymoneykarma to determine the monthly EMIs. 

Try to get a pre-approved home loan - Involve the bank at an early stage to figure out the real value of the property and to estimate the amount of downpayment.

While calculating, add other components in the property cost too, such as registration fees, stamp duty, loan processing charges, etc

Negotiate with the Seller 

Finalizing the deal on the price that has been proposed by the seller or the real estate developer is not a good idea. You can always negotiate for a better price, elongated maintenance period, and free access to amenities, with the developer/agent. 

Be Diligent with the Paperwork 

Now we’re talking about the final stage - of buying a home. Check the model purchase agreement on the RERA website to comprehend all the clauses, so that the developer does not trick you.

To Sum Up

After completing the entire checklist, you are good to go with your plan of buying a dream home.

We can help make it come true - Apply for a home loan with mymoneykarma right away, and buy yourself an amazing abode!

 

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