The thought of purchasing a dream home gives a sense of excitement in everybody’s life. This thought of buying a home may a lot of questions along.
Apart from having a check on your budget and amenities you want in the house, first-time homebuyers need to check the below discussed important points before your initiate your action plan to own a home.
Credit score holds utmost importance in the purchase of your dream home if you are taking the assistance of a home loan to fulfill your goal. The credit score decides home loan interest rates at which the finance can be acquired.
Your credit score should be good to gain eligibility that can be checked through the home loan eligibility calculator. You can get the free credit report from CIBIL that has to stand above 750 basis points is considered as an excellent credit score to get a home loan.
It is good to hear that your credit score is good. Now you have to work on arranging a down payment for a home loan. Every lender wants the borrower to arrange a down payment to get the home loan.
Most of the borrowers today fix the budget for the home based on their ability to arrange down payment because the lender makes it a point to issue 80% of the home value towards the loan.
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You can take the help of a home loan eligibility calculator and know the loan amount you can avail based on the down payment you can arrange for the home loan. If your credit score is above par, the lenders may consider issuing the home loan with zero down payment, but this turns to be a risky option because EMI pays out, in this case, will be higher because the home loan interest rate is high.
Choosing a home loan lender
This is the most crucial step of purchasing a home to which most of the borrowers don’t give attention to. They click the offer that comes their way entering into the longest debt trap of life. Instead, you should be very careful in choosing the home loan lender.
Comparing the home loan interest rates of different lenders on the comparison portal is one good step to sort out the best deal available in the market.
You should also keep a check on home loan eligibility, type of home loan interest rates, processing fee, and other hidden charges in choosing the lender that is optimal for you.
When you are all set to buy a home with a comfortable EMI, you suddenly realize that you have to pay property taxes to the local government to get your property registered. These property taxes form a substantial part of your home loan cost.
After the effects of GST have even made it more costly. You should discuss the cost with the other homeowners that have registered their property recently and arrange the funds for the same.