Home-Buying Process

It doesn't matter if its your first home or not, buying a home is a complex experience. It can be a very intimidating process, especially if you haven't done it before.

Before jumping on the decision of buying a home, figure out whether owning a home is right for you. Consider the extra responsibilities and costs that come along in owning a home.

Here are a few tips that can make the process easier.

Finances: Put the horse before the cart, figuring out how much you can afford and then financing your home should be your first consideration. Buying or Owning a house is a major commitment, you'd need to be mentally and financially prepared for it. You will need to consider your net income and your other debts ( car loan or any other loans) when deciding if you can afford to purchase a home. Calculate the EMI that you can afford. Consider the immediate cash outflow, decent condo's start from 1 crore onwards, you'll need to be prepared for a downpayment of at least 20 lacs.

Loan: Before deciding on the property, try getting a pre approved home loan or get to know what you are eligible for, most banks like HDFC or SBI offer these products. Getting a pre approved loan helps make buying faster and easier. This helps you in searching homes within your budget, saves your time and everyone's. One common mistake where most people do, select the builder, make the downpayment and then fight for loans, if you plan to cancel your booking, most builders charge .5 to 1% of the property value. Check your loan eligibility first.

Choose your Suburb: North, East, West or South. Choosing your suburb is only a part of decision making process. This is the fun part, you've got your pre-approved loan and its time to go house hunting. Save time and money and research online before you hit the roads. Once you narrow down the choice to a particular area, then a suburb or two. Check for local crime statistics, accessibility to schools, grocery shops nearby, medical assistance nearby. Drive through the neighborhoods during different times of the day to have an idea of traffic flow, noise levels. Try having a chat with a shopkeeper to know more about the suburb. Get to know the properties that are under construction or ready to occupy. Most builders are registered with CREDAI, so you shouldn't be worried about the quality of construction or documentation process unless you buy it from unlisted builders or a private person. Also, check for resale value of existing units in the suburb, this can help in negotiations.

Finish the Deal: Negotiate as much as you can, even big builders offer a discount of 50 to 100 per sq ft, this can be a huge amount at the end. If you like the property, don't leave the deal open, you can block the unit for a couple of weeks without any payment. If all goes well, you'll need to sign an agreement with the builder and deposit a booking amount. While you pay, make sure you pay by cheque or electronic format. Banks will need a proof of payment and a receipt with payment references to disburse your home loan. Make sure you review the agreement carefully, if required, hire a lawyer to help you in such matters.