| Are you gearing up for your first home purchase? | | | | the market. Shortlist properties that fall into your budget |
| You are about to begin on a long journey, which if you | | | | and then research on these properties. The research |
| are not careful, can put you in a spot that can bother | | | | should include history of builder, performance of his |
| you for a very long time to come. The logic behind this | | | | previous constructions in terms of maintenance and |
| entire exercise is simple- be careful, practical and | | | | quality of construction as well as financial stability of |
| systematic. | | | | the company. This gives you an insight about the |
| There are a few steps that you need to be very | | | | construction company and helps you in your choice of |
| vigilant about when you start your hunt for a new | | | | the product. As you close in your choice, the last step |
| house, for the first time in your life. These involve all | | | | that is involved is the lending aspect. |
| aspects of the purchase- real estate trends and | | | | Speak to banks or lending institutions that lend money |
| markets, financial planning and most importantly | | | | for home purchases and seek data on interest rates |
| systematic and thorough research into the product of | | | | and down payments required. Scan the financial |
| purchase. | | | | markets on trends related to interest rates. This is vital |
| As you embark on this journey, the first step that you | | | | as it gives you a clear picture about the path taken by |
| would counter is your budget for the purchase. In case | | | | banks in connection with lending interest rates. If these |
| you are planning to go for a mortgage loan, then the | | | | are pointing to further reductions, then it will be prudent |
| procedure is quite lengthy. For this, look at your present | | | | to choose floating interest rates, as the rates might |
| income and the bank balance that you possess. For | | | | come down in future and you can take advantage of |
| starters, you need to have at least fifteen percent of | | | | it. In other cases, if found to be spiraling upwards, this |
| the allocated budget to pay upfront as well as an | | | | allows you to decide on a fixed rate of interest, |
| additional amount to take care of regulatory fees. This | | | | something that will insulate from the increases that |
| is because most lending institutions finance only up to a | | | | may occur later. |
| maximum of eighty five percent of the price of | | | | Scanning the documents related to the acquisition is |
| property, and this excludes the legal and registration | | | | also important, but in most cases the bank and their |
| charges connected with the purchase. Hence, you | | | | legal team help you out in finishing these formalities |
| need to examine your bank balance. As you analyze | | | | without any hassles. In case you are planning for an |
| your income and expenses, ensure that you have at | | | | outright purchase, then it would be advisable to hire the |
| least forty percent of your income that you can save | | | | services of attorney, well versed with legal |
| every month. This is the benchmark that normal banks | | | | documentation related to real estate. |
| earmark as monthly mortgage payments. You need to | | | | These basic steps shall ensure that your dream home |
| prove that you can match this amount and set this | | | | turns out to be as good as your wonderful dream and |
| aside for monthly payments. | | | | that you shall cherish it for your lifetime. |
| As you finish your financial analysis, it is time to turn to | | | | |