Try to know how to Buy a House in India? Buying your first home? Looking for a new place to live in with your family? Read on to find out some intricate steps that will ensure you don’t stumble while making possibly the biggest purchase of your life!
All this ‘house-buying’ exercise might seem a little overwhelming, but worry not; we at Bachat are here to help you out with all things money! Read on to find out how.
1. Think why you need to buy a house in India
Your home will most likely be the biggest purchase of your life. So you will, I trust, give plenty of thought as to why you want it.
Purchasing a house in India is a decision that shouldn’t be treated lightly. Therefore, it’s essential that you identify your own financial objectives before continuing.
It is essential that you think about factors like whether you think you’re ready to adopt the responsibility of maintaining a house, and whether you can comfortably afford it without denting your financial car.
You should consider things like what amenities are you looking for in a house, what is your preferred locality, how expensive a house you can afford to buy, and how long would it take for you to save for a down payment.
These are all important to help define the goals you would like your house and budget to meet.
2. Assess your credit score
Checking your credit score will enable you to decide your financing choices way better than otherwise. Banks use it (among different factors) to set your loan amount and assess whether you can pay your interest and monthly installments with your income source.
You can head to your bank and ask them about your credit rating.
The better your financial record, the better interest rate you can grab on a house loan.
3. Make a house budget
In spite of the fact that the cost of an expensive house can eat up your peaceful nights, there is something particularly enticing when you buy a house in India which costs way more than you can afford, right?
The reason behind this is simply that the Indian mentality makes us all believe about how a costly house reflects a strong stance in the social and financial arenas of your life.
Most of us fall into this trap since we believe that purchasing a house in India is a one-time event and we should get whatever we can, even if that means stretching your finances like a rubber band. But what we often ignore is the negative recoil this action is going to have on our personal life.
At the time of purchase, you should try to first gauge the amount you can afford to spend on a house given your income. After discovering this amount, you must try to find a place which costs around 15% lesser than your gauged amount.
This will lead to you never losing your sleep over your installment and interest payments. Also, surprisingly, you will have the option to fulfill heaps of other objectives, from retirement to travel and also, home improvements and renovation.
That is all the cash that might’ve been spent on a progressively costly house.
Setting a reasonable spending plan for your new home will make it easier for you to realize that how much money you can afford to shell out both for a down payment and for the monthly installments.
For more budgeting tips when buying a house, read 7 Home Buying Tips In India
4. Put 20% Down!
A simple trick to gauge your ability to afford a particular home is to see whether you can pay at least 20% down payment at the time of purchase.
All the more critically, in any case, it’s a decent gut watch that you can manage the cost of the house. On the off chance that you wind up extending for a house that expects you to lessen your down payment, you might be spending excessively.
Start saving today for the down payment. Saving today will ensure you have enough funds at the day of the down payment.
5. Shop for a home loan
Getting a home loan can be a difficult task.
But, what’s more difficult is searching for the perfect home loan that suits your needs.
You can consult different banks and ask them to give their best possible terms of a house loan which they can offer you. This way, you can compare the terms of different banks and then finalize one.
Finalizing a home loan will give you a firmer handle on the amount you can bear.
6. Contact a Real Estate Broker
In order to begin your house search, you must contact a real estate broker who you can trust will help you make informed decisions and connect you to reputed property dealers.
You should ensure that your broker has a good track record, a thorough knowledge of your desired locality and is keen on finding the perfect place for you having your desired amenities.
This step is crucial given a real estate broker can save you both time and money by helping you look for a home that suits your needs.
7. See numerous homes
After getting in contact with a real estate broker, you must tell the broker what kind of houses you would like to see, what amenities attract you, and which locality is preferred by you.
Also, it is essential that you understand that you will most likely be not able to check everything that’s on your amenities list, therefore you will have to prioritize your list.
Additionally, keep notes on every property you visit. After you’ve visited a couple of houses, it’s anything but difficult to remember which houses you loved and why.
You must also keep in mind that listing photographs can be deceiving, so surveying homes face to face enables you to settle on an educated choice.
8. Make an offer
When you find “the one” (no, no, not a partner, we’re talking about a house here!), it’s a great opportunity to make an offer to the owner of the property.
Typically, most sellers reply affirmative to your offer or present a counter-offer within a day or two.
The owner may counteroffer on your price or conditions. Then, it’s completely your call whether you want to proceed with the deal, negotiate it further or reject it.
9. Get a home inspection done
You can get a thorough home inspection done after you’ve finalized a deal.
An inspection like this will give you a detailed image of the house’s condition.
The home investigation will enable you to make sense of the repairs required by the house, if any. This way, you can ask the seller to fix the damages revealed by the investigation.
10. Arrange fixes and repairs
Your home investigation report may uncover some real issues in the home — some real, some minor. The minor issues might be an indication that you’ll have to do fixes later on, yet serious issues should probably be fixed by the seller at the time of the deal.
Your broker can assist you in negotiating with your seller. Either the seller can fix the damages or maybe he/she can provide the required compensation in cash.
There is a possibility that a seller may decline from repairing any damages. If this is the case, you can consider opting out of the deal or you can repair those damages from your own pocket.
11. Take a Final Look
A final look is a chance for you to see the property before it turns into yours. It’s a smart thought to have your broker there who can go with you for this final stroll through.
This should be done so that when you buy a house in India, you can be sure of the property and that it is in a suitable condition.
You must take this final look seriously as this is your last opportunity to see the house, pose inquiries and address any issues before the house turns into your home.
12. Close the Deal
When you are fully satisfied with the property, the house inspection, the price and the final walkthrough, you can finally close the deal.
You must read the whole contract before signing and make sure all the details are correct and more importantly, spelled correctly.
When the deal has been signed, the house is authoritatively yours and you’ll get those house keys.
With this article, you know exactly how to buy a house in India. Now comes the next step: moving in and making the house your home.
Purchasing a home includes a ton of complex steps; however this guide — alongside the expert aptitude of your real estate broker — can enable you to explore the procedure easily.
In order to begin your house search, you must contact a real estate broker who you can trust will help you make informed decisions and connect you to reputed property dealers. You should ensure that your broker has a good track record, a thorough knowledge of your desired locality and is keen on finding the perfect place for you having your desired amenities.
You can get a thorough home inspection done after you’ve finalized a deal. An inspection like this will give you a detailed image of the house’s condition.
A simple trick to gauge your ability to afford a particular home is to see whether you can pay at least 20% down payment at the time of purchase. All the more critically, in any case, it’s a decent gut watch that you can manage the cost of the house. On the off chance that you wind up extending for a house that expects you to lessen your down payment, you might be spending excessively.