Invaluable tips for first-time Home Buyers

First-time home buyers must take stock of their financial health, know the market, and stay mindful of their budget before buying a house

Few things feel better than buying your first house. The warm emotion of getting the keys to your home trumps most other feelings, and it is unlikely that you will forget it throughout your life. First-time home buyers are, therefore, always enthusiastic and bustling with joy, but their eagerness can lead to mistakes as well.

Here is an overview of what you should think about before buying a house and what to expect from the buyers’ journey.

Tips for first-time home buyers

Here are some tips that could help first-time home buyers make the right choice:

1. Take stock of your financial health

Many people look through properties for sale when buying a house. While it is essential to find your dream home, first-time home buyers should first assess their financial situation. They must determine whether they can manage to repay the home loan they would need to buy their dream home. Hence, examine your savings to see if you have enough to afford the house you want.

2. Research the market

If you want the most affordable home loan interest rates, you must compare the interest rates offered by different lenders. It will help you find the deal that works best for you.

After you have decided on the right lender for you, you should use a home loan EMI calculator. Many lenders, including IDFC FIRST Bank, have a home loan EMI calculator on their website or mobile banking app. The tool helps you figure out your home loan EMIs and whether you can afford them.

3. Leverage government schemes

The Government of India regularly launches new schemes to assist citizens in buying property. The Pradhan Mantri Awas Yojana is a testament to the government’s efforts in this direction. The scheme addresses the shortage of urban housing for certain unprivileged sections of the society.

Such schemes can also help first-time home buyers, as they attract low interest and might be exclusive to people buying their first house. Most banks, including IDFC FIRST Bank, allow you to access these schemes to buy property.

4. Evaluate the down payment

Before you set out to buy your first home, ensure you have sufficient resources to make a down payment. Lenders usually require that you make a down payment of between 10-25% of the property's value.

5. Wisely choose your home loan tenure

The EMI amount on longer repayment terms is less, but you end up paying more interest. Hence, evaluate your finances and try to strike the right balance between the right tenure and home loan EMI amount. Home loan applicants at IDFC FIRST Bank can seek help from experts in the field, who can guide them in the right direction.

6. Stay mindful of your budget

First-time home buyers are often misled to purchase a property out of their budget. Ensure that the same does not happen to you. Always stay mindful of what you can and cannot afford. Look for a house that has appropriate amenities and is yet within your budget. Also, ensure that the property you are buying is legit, and so is the company behind the project. Banks often evaluate the construction company’s reputation before approving a home loan.

Buying a house for the first time is a wonderful feeling, but you must ensure that it does turn into an unpleasant experience. Every step that we have discussed is as important as the next and will prove invaluable when you step into the property market for the first time.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.