5 things to do before buying a house
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.