Buying your first home can be an exhilarating experience. While this is a journey that everyone looks forward to, you might need to prepare yourself to make some important decisions. If you do not know much about terms such as stamp duty, registration fees, and Property Insurance, you need not worry. Here are tried and tested tips essential for first-time homebuyers:

Determining the budget

Before starting to search for your dream home, you need to understand your budget well. List potential sources of funds, like a Home Loan in Delhi, if you plan to finance your home purchase with more than just savings. Keep a close check on your credit score. Seek out more information regarding Home Loans and the amount you are currently eligible to borrow. Use the Home Loan eligibility calculator to arrive at the estimate of your maximum Loan amount.

Determining the look of your dream home

Next, make many small but important decisions revolving around your investment’s location, locality, number of bedrooms, etc. It is a good idea to check if these factors align with your future goals. For instance, if you plan on starting a family in the future, it helps you buy a house in a locality near a school. Proximity to hospitals, banks, or post offices can also be an added advantage.

Crunching the numbers

Some important numbers to look for after budget calculations include the reselling potential of the house and the rental rates in the area. These numbers can greatly determine the quality of your investment a few years from now. If you are purchasing a property with the intent of renting in mind, it is helpful to note that rental rates are ideal in highly populated areas.

Crunch the numbers and account for additional charges and costs, such as those of real estate agents, lawyers, brokers, notaries, etc., while applying for a Home Loan in Delhi.

Applying for a Home Loan

This step involves a lot of research, comparison, and reading. Luckily, there are many online resources to help you at this stage. Take the help of Home Loan eligibility calculators to check the maximum amount you can get and the lender’s eligibility criteria. A Home Loan EMI calculator helps you get an estimate of your monthly EMI, which helps you plan your finances.

Stamp duty, registration fees, etc.

These are some costs besides the property value borne while taking home ownership. Although the stamp duty is generally 5% to 7% of the property’s value, it varies between states. These charges are not accounted for in the Home Loan.

Conclusion

The final Loan eligibility depends on your age, repayment capacity, existing Loans, etc. You can add a close family member with a high income and credit score as a co-applicant for a larger Loan amount.