Buying a home all by oneself for the first time can be an exciting and humbling experience. Though most first-time homebuyers get plenty of advice from parents, family members, friends, and colleagues about their experience while purchasing a house, the learning curve for each is certainly different. To make the process hassle-free, it is recommended that the first time homebuyer makes a checklist before starting the search for the ideal home.
Check the credit limit
Before going out on a house hunt and selecting a home that your bank does not approve due to your credit score, it is best to check your financial obligations and limitations. “Every bank today has a set of criteria for granting home loans to individuals based on their present income proof, past relations with financial institutions, and future prospects,” says Akash Trivedi, who bought his first house in Palavakkam, Chennai. Once the bank declares the loan limit you are eligible for, the house search can start, keeping in mind other expenses that will crop up when the house is finally selected.
Understand basics of real estate terminology
Dealing with builders and developers is not an easy task for a first-time buyer as there are so many confusing terms involved in the process. It is critical that you understand the exact size of each room of the house under consideration before making a final call. “Ask them about built-in amenities and structures that will be provided so that you have a fair idea about additional expenditure that is likely to be incurred to make it livable,” advises Husna Syed, a HR professional from Bangalore.
Search patiently and be attentive during home inspections
Remember you are going to spend at least a few decades if not an entire lifetime in the house and would want to sell it at a profit, so take your time to search for a place that has the potential for appreciation.
Check the neighbourhood with the same attention as the house to avoid stepping into a place that has a high crime rate, garbage issues, water logging issues during rainy season or neighbours that do not match your social status. Inspect every inch of the house and all the fixtures to have a clear idea about repairs or changes if needed.
Take the opinion of others
“Before signing the final papers, take a friend or relative or even a colleague, who already owns a property, to the house you are planning to buy. We found that a third person perspective helps in seeing things that we might have other missed,” says young investment banker, John Pillai.
This will help you have a clearer idea about its pros and cons without the blinders that you may have acquired after falling in love with the property. They may also call your attention to other properties that would be more suitable to your needs.
Maintain an emergency fund
Even if the buyer and banker have been transparent about every small cost that is part of the entire process, you would still be surprised at the little extras that still crop up before you finally move into the house and after. “Always keep a back-up,” suggests Prasanna Vasudevan, who learnt that the hard way after a sudden layoff from his company. To avoid dipping into your medical emergency savings, keep a small fund aside to manage these small expenses.
For a first-time house owner, buying a house will remain the most expensive investment for a long time. It is therefore advisable to research every nuance of the entire process before taking a final call.
This article was originally published on www.thehindu.com dated July 23,2017
