A first time home buyer is always anxious and nervous about striking the right deal and looks for guidance from others. He is unsure about whom to trust as everyone has a different take on real estate sector and how it operates. Hence, for a first timer, property buying process may seem dreary and weirdly drawn out. Here some mortgage tips for first time home buyers, which may assist a bit in taking decisions.
To come to point in life where one is finally able to plunge into buying a property is quite something and one waits and works for this milestone. But as exciting it may seem it is very mind wreaking and tedious process; more so for a first time home buyer. One feels exactly the same like they felt on the first day of one’s college life; excited and nervous at the same time.
Buying home needs immaculate planning and a financial road map for successful and strain free implementation of project home buying.
Figure out your credit worthiness
In order to buy a house one has to take a home loan and no matter what the amount is, it takes good amount of years and effort to pay back the money. Also, to qualify for a home loan one has to have good financial and credit record. This comes from good financial management and good amount of savings and regular compliance in financial matters.
Visit as many banks as you can and find out how much amount you are eligible to take as a loan and for what period. Also, compare the interest rates offered by various banks on their home loans. Banks in order to attract customers provides leverages and concessions; especially in home loans.
Count all your savings
Before making a big financial commitment like a home loan, one should be aware and confident about their savings for the future. This also includes ensuring continuous inflow of funds for monthly expenses.
Be clear about what part of your savings are you going to use for property buying and what you are going to keep with you.
Take all expenses in account; even post buying
Count all your expenses and unforeseen events. This may help you know the limit of loan and what is the kind and size of property you can afford. Also, include expenditure which one needs to incur after the property is bought. This includes electricity bills, property maintenance, society membership expenses etc.
Calculate your EMIs
Before you venture out figure out your loan amount and how much would be its EMI and whether you can afford it easily or not. Don’t get emotional and carried away and assume a promotion, job change, or an increase in salary. Calculate on the basis of what you have now and how it would it be if things get worse.
In the era of pink slips, unemployment, imbalanced economy and fewer opportunities; it is important to be realistic and then take a big responsibility like a home loan.
Hire a realty expert
To make things easy for a first time home buyers plan it is always better to seek advice from a good and well known real estate expert. He will not only guide you about the worth and future of the property you are aiming to buy but also recommend ways to bring down your home loans and how to pay them back conveniently. Also, he can guide you about the documents required and legal processes that may seem like rocket science to you. This would ease up the pressure quite a bit.
(The author has been tracking the real estate sector for eight years for leading television channels and print media.)