5 Things Prospective Home Buyers Must Do

Your new year's resolution was that you will save enough money to buy a property in the city where you work in the next five years. You have a clear idea about your budget and have started saving for the upfront payment. As you have a good monthly take-home salary, banks are only too eager to lend.  All you have to do is get ready with the down-payment. But that is not it; there is a lot more that- 

• You will have to be ready with a big pile of papers involving your personal and professional details. Treating this as a last-minute thing might cause you much trouble at a time when you want to close the deal and go home as soon as possible. Start working on putting in one place papers that you will need while applying for the home land and while completing the transaction.

Also read: 5 Most Common Problems A Home Buyer Faces And Their Solutions

• Banks will review your past credit behaviour. And, there is no chance of a poor credit score improving overnight. This is why right when you decide to invest in property, you think make sure you are paying your credit card bills on time, you are not indulging any small or big financial disputes, and you are not defaulting on repayment of your automobile loan.

• It is a great thing that banks finance 80 per cent of the value of the property. But this does not mean you will be content with saving only 20 per cent of the amount. You must factor in that a substantial amount of the money will be spent in paying stamp duty and registration charges. You must also remember that you might like to make certain changes in the property upon your arrival here. So, when you start saving for the big purchase, keep in mind all these "extra" expenses.

• Frequent job changes are sometimes good for our professional growth. With each change, our salaries grow substantially. And, if you are an exceptional worker, they may double in no time at all. However, banks might often find it as “drifter” behaviour, and decide not to lend you. Right when you decide you have to buy a home soon, sticking to your job would be a good idea.

• The work of property transactions is a wild one and if you are not attentive enough there are chances of getting lost at every step. An effective way to deal with this is reading. Read about financial terms that the loan application firm would throw at you. Also, keep yourself abreast with policy changes. For instance, homebuyers must listen to when the Reserve Bank of India decided to cut interest rates. In short, reading is the key.