The process of buying a home requires a lot of time, effort and vigilance. Since it’s a very large investment which most people make only once in a lifetime, there is no scope for mistakes. To ensure that you go through the process confidently, here is a quick guide to going about it in a step-wise manner:
Know how much you can afford: The cost of the property should be directly related to your earning capacity. Ideally, it shouldn’t be more than 3-5 times more than your annual income. Since most people use a home loan to pay for their homes, shop around for a bank with decent lending rates and find out how much home loan you are eligible for.
Most banks require the home buyer to pay about 20% of the cost, so make sure you have a nest egg saved up for this purpose.
Scout for properties
Now that you know how much you can spend on home buying, search for properties that fit the bill. You should have a list of what you need in a home and forego properties that don’t fit your requirh4ents. Don’t fall for a property just because you like the wall paint or the garden. Check out the traffic situation in the area along with access to facilities like public transport, groceries, schools, restaurants and hospitals. You also need to have a clear idea of the type of home you require – an independent house, apartment or villa?
Location and neighbourhood
These are crucial factors when home-shopping as they become important if you ever need to resell the property. A good location should mean an increasing value over time and a good neighbourhood should infer safety as well as freedom from noise or air pollution.
Once you have decided on the property, ensure that the builder has obtained all clearances and permit documents needed, starting with a sanctioned plan, commench4ent certificate, down to completion certificate. Check for encumbrance certificate, recent tax receipts, occupancy certificate, etc. Hiring an experienced property lawyer becomes a wise investment at this point.
It’s not just the home, but the builder’s reputation that also matters. Go for a builder with a brand name as well as a history of timely deliveries.
Payment procedure: Depending on whether you are going for an under-development project or a ready-to-move-in home, the payment patterns vary. Be prepared for the right format.
Once you or your lawyer has ensured all documents are in place, go ahead and seal the deal!