How to Buy your First Home?
Buying your first home is a major milestone in life and brings with it incomparable feelings of pride and joy. Owning a home is also a big commitment as it involves a large sum of money paid out over a couple of decades or more. You need to think over it carefully and first ensure that you are financially stable, have enough for a down payment as well as a lump sum set aside for emergencies.
Don’t let anyone pressurize you into buying a home till you are financially ready to do so. Buying a home in a hurry, without proper planning, could end up hurting you financially and that would lead to a lot of grief. Here is a look at the various steps involved in buying your first home:
Home Ownership-Ready
You first need to determine if you are ready to buy a home. Aside from job stability, stable income and a decision to settle down in one place, you should understand that buying your first home is more expensive than renting a home. You will not only have to dole out monthly EMIs, but also pay property taxes, home insurance, utility costs, repair costs, etc. Ensure you are debt-free and financially stable before taking the plunge into becoming a homeowner.
Down Payment
When buying a home, you will have to pay at least 20% of the actual cost of the property – whether it’s a villa or an apartment home. So you will need to have this down payment saved first, which is a neat sum in itself. Take your time to save this sum in a systematic, monthly saving scheme and invest it wisely to make it multiply.
Budget
The first property you buy need not be your final property; keeping this in mind, plan your home budget. After paying the monthly EMI and other home-associated expenditures, your expenses shouldn’t be more than 25-30% of your total income. After all, you need to consider your daily expenses too – aside from saving for retirement.
Location
Once you are done with the finances, you need to settle on the location of your new home. It should be a little away from the city center to avoid higher costs as well as the hustle-bustle associated with it. This way, you will be able to buy more space too. The location you choose will also have an impact on your home’s resale value down the years, so treat it like an investment.
Loan
Since home buying involves a huge sum of money, it is traditional to avail of a home loan to pay for it. Most banks approve home loans of up to 80% of the sale value. The remaining you have to pay from your pocket right at the onset.
Before approving a loan, your loaner bank will check your eligibility for repaying it back. For this, some of the details you will need to furnish include your age, average income, any existing loans, etc. Before applying for a home loan, clear off any other existing loans and debts so that you can have a good CIBIL score of over 750 points or more. This will influence the interest rates chargeable on your home loan and the repayment EMIs.
Additional Expenses
You need to be prepared for some additional expenses too. The most important ones include Stamp Duty and Registration fees. Depending on your city, this could add up to almost 10% of the cost of your home. Aside from this, you have home insurance to think of, the interior décor, new furniture as well as moving home and other miscellaneous expenses too.
If you are planning on buying a home in Thrissur, then you will be spoiled for choices as there are so many luxurious villa and apartment projects in Thrissur to choose from. Realty developers like Vishraam builders have a number of delightful villa and apartment projects located in niche parts of the city.
With over 21 years of experience in building quality homes responsibly without harming the environment, every Vishraam home exists in tune with Mother Nature. What’s more, Vishraam builders have also been awarded several prestigious awards for their dedicated efforts. The beautifully-architected apartment and villa projects come fully-loaded with delightful amenities and luxurious facilities, making them perfect for your dream home!
