Buying your own home and building a home as you wish is the dream of many. So the current practice of buying a house as we think will require millions of rupees. In addition, we have to consider several times whether to buy or finish the house. There must be proper planning.
Many people today plan their dreams of owning a home in a variety of ways. One of them is home loan. These home loans are provided by many government and private banks. The loan amount is determined based on your income, the value of the home, and the credit score.
This home loan is a long term loan. For this you will have to pay a substantial amount every month for many years. Therefore, it is essential to know some important things before you buy a home with a home loan. Here’s what you need to know about it.
When you buy a house, you need to consider your financial status, where you are going to buy the house, and how you are going to repay the loan. All three of these require proper planning.
If you are planning to buy a home with a home loan, you can get financial assistance up to 75-90% of the total cost of the home through a home loan. You have to spend the rest yourself. So you have to have a substantial amount ready as the starting amount. Also, the higher your initial payment, the lower your monthly installment will be.
You need to have the money ready for this on hand. If you save a substantial amount per month on any savings plan it will grow into a huge amount in 4 – 5 years and become a down payment to pay off your home loan.
There are many ways to save money. For example, if you pay Rs 25,000 per month in an equity mutual fund, you will get back Rs 10.9 lakh after 12 years with 12 per cent interest. The lender will check your loan repayment ability. Donation loan will be given on its basis.
If you are going to get a loan for a new home, you need to make sure you have a good credit score. It is best to have a credit score of 750 or higher. A high credit score indicates that your repayment capacity is strong. Then you can get a low interest loan.
If you take out a loan and pay it off via EMI, pay off the loan in full. Having a high EMI can make it difficult to repay a home loan. It can also affect your credit score.
Required Documents – Certificates
Homebuyers should first check if they have the required certificates, legal documents and local permits for the property they are buying. Another important thing to check is whether the property is registered with the Real Estate Regulatory Authority (RERA). Security is available when your housing plan is delayed or if there are any defects in the construction when it is registered with the RERA. If you do not have the required certificates and permits, you will not be able to get a home loan.
Title Deed – Certificate of Ownership
Before buying a home, you should check and confirm the title deed and deed of the property. This is the title deed to the land. The certificate of ownership identifies who has the right to change or sell the property. To find out if the property is in any case or if there is a mortgage on the home, you need to check the title deed. These will also serve as proof that the property is free from legal issues.
You can also seek the help of a lawyer to review the documents. No one wants to invest in property that will cause problems in the future.
Stamp duty – Other fees
The amount you have to spend when you buy the property will be different from the amount you said. There are other costs involved in purchasing a new property. Stamp duty (5-7%), registration fee 1-2%, maintenance fee and parking fee will all be paid at the time of signing the contract. In addition, 1 per cent GST will be levied on houses costing less than Rs 45 lakh and 5 per cent on houses costing more than Rs 45 lakh. It is important to know what such costs are.
Apart from these, there are some things to consider before buying a new home. Carefully evaluate where the house is located. Ensure proximity to educational institutions, hospitals, rail-road connectivity, airports and shopping markets. Also, getting a home loan and getting advice from experts in the field can help you move towards your dream.