Are you looking to buy a house in the next few months of 2021? If yes, it is necessary for you to understand that buying a house is a significant investment decision and it shouldn’t be taken in hurry. But, what is the right process of how to buy a house in 2021? From taking a home loan to choosing the right property, determining your budget, and others, there are hundreds of things that play a pivotal role in making a good home buy.
Despite the challenging times of COVID when financial hardships hit most of the population, there are many who are willing to buy a house in 2021. For them, here is a step-by-step guide on how to buy a house.
Determine your affordability
So, before you begin your journey to buying the house of your dream, it is necessary to test the waters. This means it is recommended to check your affordability first. This would help you set a maximum limit in terms of the property amount. Moreover, this would ensure that buying a house doesn’t impact your other household expenses.
At a time when getting a home loan has become quite easy, check out how much you can afford to pay as the down payment. This would help you reduce your monthly EMIs later. The overall objective of this practice is to stay confident while buying the house of your dream.
Fix the location
The location of the property plays a significant role in determining its price. For example, if you choose a posh location, the property rates would certainly go up. So, basis the fixed budget, you can decide on a location that is affordable and convenient for you across various aspects.
Make sure the location is within the city limits and all major public amenities can be accessed quickly in case of need. Also, check the nearby localities before finalizing the property location.
Check the resale value
This is one of the important steps in a home-buying procedure. Don’t forget to check the resale value of the property you are looking to buy. This value rests on a number of things like your builder’s reputation, nearby locality, and others. This element is particularly important if you want to shift to a new location in a few years or you are buying the property for an investment purpose.
Determine your loan eligibility
Though a majority of banks and financial institutions offer easy ways to obtain a home loan, it is necessary to check your home loan eligibility before applying for a home loan. The simplest way to do this is to use a home loan eligibility calculator available on various websites. This way, you can check your eligibility for a home loan in no time. The loan eligibility does not necessarily mean that you can secure a loan as it also depends on the actual property itself. However, these loan eligibility calculators are a great tool for homebuyers who can easily check how much home loan they can expect after the application.
Registration, stamp duty, and other charges
Registration and stamp duty refer to costs that are paid over and above the buying value of the property. These costs differ from region to region in India and each state has a specific equation for the calculation of the same. For the homebuyers, it is necessary to consider these costs as this adds to the total expense.
When buying a house anywhere in India, the registration of the property is a much-needed thing. It is like the sales tax and income tax that are unruffled by the Government. When planning your budget for property buying and deciding to buy a property, it is necessary to check the rate and charges applicable in your region. If you want to know the market value of your property and the stamp duty amount on it, you need to contact the real estate firm or an advocate to determine your valuation area and sub-zone. Find out the stamp duty amount applicable to you as per the market value.
Another most important thing is to determine what type of property you are interested in buying. There could be an apartment, builder floor, flat, villa, and others. The next thing to choose between is new construction and resale property. Please note that fresh constructions also carry a risk of permissions linked to them. However, new constructions are also known to boast more amenities.
Basically, these given pointers are the most important things to know while buying a house in India. You can contact the local authority to know more.