Simple Guide for First Time Home Loan Buyers
Are you looking to buy your first ever home? Owning an own home is the dream of many people. But it takes a lot of efforts to translate that into reality.
You may have saved some amount to buy your home, but the funds may not suffice the cost of the property. It is where you can apply for the home loan to cover the needs and repay in easy EMIs.
Based on the home loan eligibility criteria of the lender, you can get the approval for an amount.
But since it is going to be your first home purchase using the home loan facility, you need to be extra careful.
It is because if you don’t plan well, then things may go haywire, and you may end up in a debt soup. Read on and know more!
- Decide how big is too big for you
Before you go ahead with the home loan, you will need to decide the home size that may help you and your family stay comfortably. It should also have enough space to accommodate a few guests. The home should also give you a good value if you decide to sell it in the future. Buying a bigger home means applying for a large loan amount and paying higher EMIs. It means that your outlays may be affected. Thus, you should decide on the size of the house before applying for the home loan. If you want to know an amount that your income can support, then you can use the home loan eligibility calculator. It will showcase the amount that may be sanctioned if you apply. Based on the results, you should buy a home so that your income may support EMIs.
- Check the location of the home before buying
The location of your home should be in a well-known area of the city. It should help you reduce your travel time from and to your office. What’s more, when you select the home in a prime area with growing infrastructure, then you may enjoy a lower rate. In turn, it can help you pay reduced EMIs. It is because if you don’t repay on time, then lenders may find it easier to liquidate the property to recover the loan money.
- Review the reputation of the builder
You just can’t book your first home without analyzing if your builder is credible enough to deliver the same on time. To do that, you should go through the online reviews of your builder and know if it’s worth relying on. You can also visit one or two properties that the builder has delivered earlier to enquire about the quality of the deliveries.
- How much home loan amount is too much
The higher is your loan amount, the bigger will be the EMIs, and it will impact your outlays. Hence, you should ensure to know if the home loan amount that you are applying will suit your budget or not. The best thing would be using the home loan EMI calculator. The tool will showcase the exact EMI payable, along with the interest charges and total loan cost (principal + interest). This way, you can either increase or decrease your loan amount as per your repayment capacity. Also, using the home loan eligibility calculator can help you know an amount that will be approved if you apply. It is on the basis of your income, current obligations and other income sources.
- Check your cibil score
Your cibil score also has a say in the approval of the housing loan. If your credit score is 750 or more, then you can get the housing loan approval fast and at a lower rate. In turn, it can help you pay reduced EMIs and save on home loan interest rates costs. You can maintain a robust credit score by making timely repayments on EMIs and other bills.
- Get your documents in order
One of the aspects that the first-time home buyers should consider is ensuing to furnish all documents. The lender may ask you to submit documents related to your identity, address, employment, income and property that you are buying. Hence, you should make sure to keep the list of documents required ready. The exact list of documents is enlisted on the website of the lender that you want to apply with. It can help you start preparing all in advance and take one step towards the loan approval.
If you are able to keep the discussed aspects in mind, then you may be able to move into your dream home using the home loan with confidence.