Knowing the Steps Involved in Buying a Real Estate Property

If you have decided to buy a new home, you may feel all excited about moving in but when you actually start looking for a property, you would realize the process is quite intimidating. Buying a home is probably one of the biggest financial decisions you would ever take in your like so make sure that you carefully take the decision by assessing your current and future financial conditions and determine if owning a home is the right decision.

Vineeth Sharma, a businessman from Hyderabad decided to buy a new home in one of the most expensive locations in the city even when the prices of real estate in Hyderabad was at its height. Being all ambitious he booked a flat and even applied for a home loan only to find out soon that his business is not doing so well and that he was unable to keep up with the various costs associated with his home. Impromptu decision making, lack of planning and not knowing the various steps involved in buying a home forced him to put up his home for sale and move into a smaller home.

Irrespective of whether you are looking for plots for sale in Hyderabad or if you are investing in a ready to move in apartment, it is vital that you are aware of the various steps involved in buying a real estate property and abide by them.

Know your credit score

First and foremost, before you apply for a home loan it is best advised to check your credit score. The scores range from 300 to 850 and the higher your score is, the better your chances of qualifying for a loan.

Determine how much you can afford to pay every month

Use a home loan calculator to determine how much loan you need to buy your dream property and how much money you can afford to pay every month towards the EMI without compromising on your other expenses. Also, remember that you would need money to pay for the down payment. Assess your finances and the cost that you would need to incur immediately and in the long run and take your decision accordingly.

Choose the right lender and agent

Hire a good real estate agent who could help you find the right property to suit your needs as well as your budget. Also, don’t rush into applying for a loan just because the lender is offering home loan at a lower interest rate. There could be various hidden charges so make sure that you carefully read through the terms and conditions. It is best advised to consult an expert to understand the loan clause and choose the lender that works in your best interest.

Look for the right home

Once you have zeroed down on the lender it is time to go home shopping. Assess your family members’ needs and look for a home accordingly so that everyone in the family has a comfortable space and are happy about moving in to the new home.

Make an offer

Remember, the seller of the home will make his/her own offer for the property and they always quote a high price expecting that there would be some bargaining. So make sure that you too make your offer, typically, you can start by asking 5% lower price than the actual quote by the seller. Make sure you don’t agree on a price that is feasible for you.

Close the deal

Always get an inspection done of the house before closing the deal. It will give you a clear idea about the structural condition of the home. If you are happy with everything close the deal by signing the agreement.