29 Jun Important Tips To Evaluate Before Purchasing Your First Home
Important tips to evaluate before purchasing your first home
Buying your first home can be an overwhelming as well as a dilemmatic situation. It is going to be significant financial decision in your life, so you must calculate all the pros and cons of it before taking the step forward. Figuring out the right size of apartment, its end use or the best real estate project is a difficult task, here is a list of valuable tips you must consider before buying a new home for the first time:
1. Get rid of previous debt and save for an emergency
Purchasing a house is an expensive decision, much different and higher from living in a rented apartment. Even if your monthly EMI is lower or equivalent to your previously rented house, you are now responsible for much more things like maintenance and upkeep costs. So, before thinking of buying a new house one must make sure that they are rid of any previous debts and have an emergency fund accumulated for three to six months of expense. If you are debt free and have a nice savings, you will have enough cash to send over expenditures of house that come on the way.
2. Affordability of a house
While looking for your perfect first home, you must determine a set budget in accordance to your finances. Looking for projects beyond your capacity may attract you on spending out of the budget which will turn out as a disaster for your finances. There should be an ample amount of budget left for other things, so you must make sure the monthly housing cost (EMI, maintenance, taxes etc.) must not cost you more than 25% – 30% of your earnings.
3. Check eligibility for Loans
It is an essential step to check for a bank loan prior to buying a house. It’s a smart move to apply for a preapproved loan in advance. Preapproval does not guarantee that you will ultimately get a finance, however it will let you get the information regarding the amount of loan you can afford.
Apart from this, checking up with bank finance options also gives you an assurance that the real estate project you are looking for is legally built, as banks don’t approve loan for projects which are engaged in legal troubles.
After analyzing and keeping in account all the financial aspects of it, finding a home can still feel like a daunting task. Scheduling various site visits and spending on not more than 4-5 projects at a time will not make you confused about each one of them. You can also hire a real estate agent, who are fine tuned in searching the property for you and will reduce the burden with a minimal cost. You must keep aspects like approachability to important places like markets, school, health care centers or your work place with ease and availability of public transport nearby.
Most buyers do a lot of research before finalizing a home, and mostly settle with an option within 6 to 8 weeks.
5. Negotiate the Offer
First time buyer’s usually make a mistake of comparing the housing projects without understanding the cost of amentias and facilities provided. No two projects can be compared over the overall pricing; however, an agent can provide you with a tentative selling price and the margin available on a price offered by the project. Negotiation over the deal will satisfy you with the purchase and not let you overpay where you could save your finances.
Purchasing your first home is not just a financial but an emotional decision which will you’re your future as well. After analyzing all the tips above, check our residential projects at Vivansa – Vijcon Properties for your first dream home.