With lower interest rates to remain, many individual will be planning to buy their dream home before there is a hike in interest rates. Real estate development usually depends economic growth of the country.
Smart individuals will buy when the rates are down as real estate has not let down investors in the long run.
Here are 8 tips for first time home loan buyers.
Under construction property
Most of the home buyers have doubt on whether to go for under construction or ready to move in property.
Under construction property can be a bit risky when it comes to completion of project on time.
Also, one should be ready to shed extra amount as they have to pay for EMI as well as rent until the project is complete.
Don't be a prey to advertisements. Some times holdings and pamphlets may provide attractive figures which may not be true in all cases.
Better to prefer a loan which will not have much impact on your lifestyle.
When it comes to real estate one should have a futuristic view on the development of the area, facilities and disadvantages attached to it. Location of the property plays a major role when you plan to resale the same.
Before applying for a home loan, be ready with down payment which is to be paid at the time of registration and remaining amount will be paid by the bank to your developer directly.
Generally, the down payment amount will range from 10-20 per cent. However, one can consider to pay higher amount to reduce the EMI amount.
First time buyers should be very careful when it comes to choosing a builder as there have been many scams and fraud in real estate. Many banks will check for the authenticity and property documents before disbursing a loan. Even banks are happy to help on the approved projects as their risk will be less.
Before applying for loan, one should check the credit score as it plays a vital role in sanction of home loan.
Home loan basics
Young real estate buyers should do their home work before applying for home loan. Banks take many days to approve the home loan amount and they usually follow the process.
Best to go with salary account
If you have many accounts also better to opt for salary account as it will be easy for loan disbursement and management of EMI. Also banks offer attractive interest rate on corporate salary account.