Home Buying Process: How To Buy a House?
20 March, 2023
4 mins read
Buying a house is a dream for many, whether they consider it an investment or want to settle down with their families. Irrespective of one’s goal behind purchasing a home, buying a house signifies a triumphant success for every first-time home buyer.
However, buying a new house is not all rainbows and sunshine. In reality, it is a time-consuming, expensive and grueling affair. That is why knowing the exact steps of buying a house can be useful.
This home buying guide will show first-time home buyers how to buy a house and help them through the entire process of buying a house in India smoothly.
Fix a budget for buying a house.
The first step in the process of buying a flat or house is to fix a budget for it. The cost of the house will depend on one’s family size and needs, among other practical factors like one’s monthly/ yearly income, size requirements, preferred location and others. For buyers who have the total deposit money in cash, budgeting might not be a problem.
But most buyers might need a home loan to aid the home-buying process. Buyers should stick to the home budget and not go overboard while searching for their desired flat.
Check the location of the house.
The second thing buyers need to check is the location of the house. Focusing only on the size and interiors will not suffice in the long run, especially if one has a family of different age groups residing under the same roof.
Buyers should ensure they have close access to facilities and amenities like good schools and colleges, reputed hospitals, cafes, eateries, restaurants, and premier sports and recreational clubs, among others.
One should also check the distance of the highways, expressways, airports and other hubs from their residential property.
Verify the resale value and rental rates of the house.
While buying a flat, homebuyers should not forget to check the resale and rental value of the property. Buyers must do considerable market research and analyse the upcoming trends and previous years' statistics to see what monetary value the house will fetch in the current and future markets.
Buying a low-resale value flat will not serve any investment purpose. Buyers should also check the rental rates in case they plan to give the house on rent and earn income from it.
Check the legal and property costs.
The fourth step in buying a house is to check all the legal and formal costs one must pay before getting the house in hand. The price of the house will include a breakup of additional property expenses like registration costs, stamp duty fees, sales tax, and income tax payments, among others.
One should verify all the legal documents before paying the deposit amount, like the goodwill of the builder, the title deed, the sale agreement, the occupancy certificate, the commencement certificate, the RERA certification and other essential documents. To ensure there are no legal roadblocks in the home-buying process, buyers should get a lawyer on board.
Check all the hidden and additional costs.
As mentioned above, hiring a lawyer is not the only cost the buyer must pay before buying a house. The buyer will also have to look out for and clear additional hidden costs over and above the base market price of the house.
These include real estate agent fees, maintenance charges levied by the building or society and homeowner association fees. These charges exceed the living costs of staying in the house. Buyers should also consider buying home insurance after buying a house.
Home insurance can protect them against unforeseen eventualities like legal disputes, title tangles, property damage, etc. and their expenses.
Check home loan eligibility.
For those opting for a home loan, the next step in the home-buying process would be to check one’s home loan eligibility and EMI repayment capacity. Checking home loan eligibility is easy; one can do it on any home loan insurer’s website. The eligibility criteria depend on factors like one’s age, income, salary, and credit/ CIBIL score, among others. Buyers should also check whether they can pay the EMI before applying for the loan. Financial advisors advise buyers to have enough money as a fixed portion of their income, that will go towards the house.
Buying a house is a lifetime commitment and hard to reverse, so one must go through the process carefully. It needs patience, due diligence and proper research. Following these home-buying tipsin order will make buying a house easier.
And when looking for a comfortable luxury home in the heart of Mumbai, Piramal Mahalaxmi’s luxury residences are a great place to end the search!
Disclaimer- This article is based on the information publicly available for general use as well as reference links mentioned herein. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.