Buying Your Dream Home? Follow These 5 Steps First

Buying a dream home is one of the most important decisions in our lives. Just imagining about that feeling of owning a dream home, fills the heart with positive warmth and what we would call our very own home. That feeling is “Priceless”.

It is important to consider some key points like choices on the realty firm/brand, location of the property, options on the home loan, payment schedule, etc so as to ensure a smooth home purchase experience. In a metro city esp. like Mumbai where residences are a little expensive wrt other metro/cities, proper planning can help get a dream home at the right price.

Through this article, we will discuss five steps that you (as a first-time buyer) should follow before buying your dream home (in no specific order):

1. Be Sure - Time it as per your comfort

Buying a dream home is a key decision and should be based on your family needs & aspirations. When you feel the time is right and you are comfortable, just go for it.

2. Location - A Nice Place or the Right Place

When looking for a home, at times it’s a call between finding a nice place or the right place. By a nice place, it could be the air quality, natural (a lush area) aspect of the location providing a good quality of life. The right place could be the location of the apartment, closeness to central shopping areas/your office location. As home purchase is a long term investment, do consider the pros and cons of each location and go for the one you feel is better & find comfort in.

3. A Good Credit Score & Savings matter

Most buyers need a home loan to fund a home purchase. Here, a good credit score can make a lot of difference. Credit Scores above 800 can improve your chances of securing a home loan at affordable interest rates from the banks/NBFC/housing finance companies. Do ensure to keep enough savings as that shall help you fund the own contribution portion (up to 20-25% of the total agreement value).

4. Look for Good Home Loan options

You can research online for the different home loan options, applicable interest rates – fixed/flexible. Also, given long tenure of 20-25 years such loans - go for a good brand with proven credentials of quality customer service, etc. It is also a good idea to go via leading financial technology companies that you can trust for candid and quality information on such financing and investment decisions.

5. Value Investing Matters - Buy at the Right Value

While excitement about a dream home is the best feeling, let your emotions not dictate the pricing negotiations. When buying a home, do research on the prevailing rate (average per sq. ft) of the locality, go for a trusted realty firm/brand, try and negotiate a good deal with the realty firm. Buying at the right value is equally important as a home like any other asset/investment say shares or mutual funds, should give you a good upside/return over the long term.

Above are some of the key points you must consider while buying your home.

Buying your first home is exciting, but there’s a lot to think about before you start looking. Start by getting all your financing in order, and using online tools to understand home loan rates, using our EMI calculator on https://finkompas.com

Disclaimer: The views expressed here are of the author and do not reflect those of Finkompas.

Finkompas is a leading financial technology company that aims to simplify your financial life by providing great financial products - loans, investments & credit cards.

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