How to check a property before buying, Property is everyone's dream. Many are making efforts to fulfill this dream as housing interest rates become available. Borrowing to buy a home is now easy.
There are a lot of things to consider before making this important decision. Even if you make a small mistake there is a risk of damaging all your other financial goals. That is why those who want to buy property should know the answer to some questions beforehand. Only then should the step forward.
- Manage your credit score carefully before you take Housing Loan, calculate in advance how much of money you can afford
- Use home loan eligibility calculator available online
- Determining the loan amount depends on how much EMI you can afford
- Taking out a life insurance policy to that extent when taking out a home
- Check once Your monthly or Annual income and other financial conditions
- Freedom should not be eroded by housing
- Property documents check before buying property
What is Home loan: Long-term liability. Interest rates rise and fall many times during this period. So, there are some precautions to be taken while taking a home loan. Only then, the debt burden will be reduced and using certain home loan eligibility calculator or home loan tools for other goals will be easier. What is the loan amount? How long should I choose? Are there difficulties in paying the installments? Home loan Interest rates fixed or floating? There are many things to consider. In addition to these.
Ask these questions before you take housing loan?
- Why to buy a house?
- Is it a good idea to buy a new house
- How to decide to buy a new house
- Do you live in it? or else targeting future investing money on property?
- If on your own to live in it, How should the house be for your family needs?
- How much area is required and What are the facilities you required?
- Facilities around you, opportunities for development.
All of these should be looked at. When you look at it from an investment point of view, you can see the extent to which the return on your investment can be, what the growth will be like, rental income. Once all these factors are analyzed, you make the decision. At the same time, tax benefits must be assessed.
How much can you spend for a house before calculating? what amenities Available?
In a well-known area, many people want to buy a house with all the amenities. But, our economic power may not be enough for that. How much can you spend for a house before calculating, the rest of the things to think about.
Do not forget that expectations are very different from facts. With the idea that the income will increase in the future. Now attempting for experiment or trying to take some more debt, this is not correct. It has not become a burden to you since you bought the house. Do not change the decision to take the house for the amount you thought. Don't borrow unnecessarily large sums and get into trouble in the future.
Calculate in advance how much of this money you can afford? Cash in hand
When we want to buy a house we have to pay a certain amount out of hand. This is called Margin Money in loan. Banks usually lend up to 75-90% of the value of the home. The rest we have to provide.
In addition, costs such as registration and interior decoration such as false ceiling, Modular kitchen, Furniture for master bedroom/children room/hall, bathroom accessories ideas, extra amenities. Margin money is determined based on the borrower's age, credit score, loan amount, percentage of the loan, and so on.
Calculate in advance how much of this money you can afford. Don't spend all the money on hand to influence your other financial goals.
Considered a good score between 750-800? Check your Credit score
Most banks currently set mortgage interest rates based on the borrower's credit score. Those with a low credit score are charged the maximum interest. So, if you do not want to have a high interest rate .. Manage your credit score carefully. Considered a good score between 750-800. Not just when applying for a loan.
How much of Monthly installments you can afford to pay?
As previously thought, housing is a long term responsibility:
- How many other debts do you already have when applying for this loan.
- What is the amount of installments you are paying for them?
- Will I have to take out any other loans in the future?
There are certain home loan emi calculator on simple interest are available, take care. Existing loans reduce your repayment of loan power. It may be necessary to take things like education loan for child i.e for the children’s education in the future.
The burden of EMIs on you is high when adding a new loan. Depending on your expenses and other obligations, rather than how much the mortgage will cost, it is best to decide the loan amount based on how much EMI you can afford. After that, choose banks with low house loan interest rates today, processing fees.
Do you get regular income for as long as the loan lasts? What is your income?
Before applying for a home equity loan, you need to ask yourself how much you are financially prepared. Do you get regular income for as long as the loan lasts? Making sure. One should try to establish more than one source of income.
Your income: When the loan is likely to be low based on other factors, Co-applicant home loan will take the requirement. Spouse may be co-applicant. Debt eligibility increases when applying for a joint loan. Women also get some discount on interest rates.
Home loan protection policies can be selected for this? Is Insurance is mandatory
Insurance for home loan protection: Insurance provides financial security for the family. Don’t forget to take out a life insurance policy to that extent when taking out a home. In case of any unforeseen circumstances, arrangements should be made to repay the loan with that insurance policy. Term policy or Home loan protection plan or policies (Check for premium calculators) can be selected for this.
For other purposes! Homesickness should not erode your financial freedom
Buying a home is important. But, it is not appropriate to neglect other financial objectives for this. Needs retirement planning, children's higher education, and their marriage needs.
Homesickness should not erode your financial freedom. If such a situation seems to be coming, buying home is an investment or buying own house should think about the matter again. Or reduce the budget.
There are no problems with your other goals. It is a good idea to take up housing when you think you can adjust your income that way.
