Buying a house for your family is one of the biggest and most beautiful dreams of life. But this should not be done only out of excitement. You should buy a house with proper planning and clear thinking because small mistakes can cost you a lot in the future. If you are buying a house for the first time, understand a few important things carefully. These tips can be very helpful for you.
Make your loan a support, not a burden
A home loan plays an important role in making your dream of owning a home come true, but it is important to take it carefully. If you have a good credit score, the bank can give you up to 90% of the property value as a loan, but you should be smart here. Try to make at least 20-30% down payment from your own savings. This will reduce your EMI and help you save lakhs in interest over the years.
Before finalizing the loan, compare the interest rates and terms of at least 4-5 banks. Choose the one that offers you the cheapest loan.
Don’t just look at today’s salary, think of tomorrow too
Do not decide to buy a house only based on your current salary. Think about how much your income and expenses may increase in the coming years. Remember, the cost of a home is not only the EMI. You will also have to pay maintenance charges, property tax, electricity and water bills, and small repairs. Make sure that your home loan EMI does not exceed 35-40% of your monthly salary.
Control your expenses
Once the home loan starts, EMIs will become a part of your life. So, as soon as you decide to buy a house, start cutting down on unnecessary expenses. Reduce spending on things like eating out, online shopping, and expensive parties. This will help you build an emergency fund. This fund will be useful for paying your EMIs in tough times and will help you avoid defaulting. Saving regularly is the most important step.
Avoid brokers and deal directly with the developer
When you buy a house through a broker, they charge a 1-1.5% commission from you and also from the seller. The seller usually adds this cost to the property price. For example, if you buy a flat worth ₹50 lakh, you may end up paying ₹1.25-1.5 lakh to the agent. Try to buy directly from the developer or seller to save lakhs of rupees.
Check the age of the property
It is very important to know how old the property is. In today’s time, the average age of an RCC (cement, concrete, steel) structure is 70-80 years. Older properties have lower resale value and higher maintenance costs. To know the exact age, you can ask old residents, check property documents, or consult a structural engineer. Getting a loan for an old property can also be more difficult.