5 things to do be­fore buy­ing a house

5Know

HT Estates - - FRONT PAGE - A S Si­vara­makr­ish­nan

It is eas­ier to iden­tify a prop­erty that you may be in­ter­ested in pur­chas­ing once you have an in-prin­ci­ple ap­proval for a home loan from the bank. An in-prin­ci­ple loan ap­proval is typ­i­cally as­sessed by the bank on the ba­sis of the home buyer’s fi­nan­cial pro­file and abil­ity to re­pay the home loan.

a home loan: To be a good can­di­date for a home loan, the prospec­tive home buyer needs to have a good credit rat­ing.

your EMI to down pay­ment ra­tio: Most non-bank­ing fi­nan­cial com­pa­nies ( NBFCs) and banks, whether public sec­tor or pri­vate sec­tor, typ­i­cally re­quire you to make a 20% down pay­ment, while a home loan for the re­main­ing 80% is pro­vided to you.

oc­u­ments you’ll re­quire: Some doc­u­ments that you need be­fore buy­ing any prop­erty in­clude le­gal right of the holder of the land in gov­ern­ment records ( free­hold), ti­tle deed of the land, prop­erty tax re­ceipts and bills etc.

in­spec­tions are im­por­tant: It is im­por­tant to carry out a home in­spec­tion to as­cer­tain the ac­tual phys­i­cal con­di­tion of the pro­ject and/or prop­erty.

the costs as­so­ci­ated with a home buy: Ideally, a home loan should be ap­plied for only af­ter hav­ing taken into ac­count all as­so­ci­ated costs, such as le­gal charges, pre-pay­ment charges or pay­ment penal­ties. You also need to en­sure that the prop­erty has been val­u­ated prop­erly, as there is a val­u­a­tion fee levied by the bank in case that has not been done. Typ­i­cal costs as­so­ci­ated with buy­ing a home in­clude: Cost of the saleable area in square feet, ba­sic price per square feet; and floor rise charges, if any etc.

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