Summary: Proper research and planning make the home loan deal of first time buyers easy and cost effective. The borrowers should examine various aspects of the loan plans before availing them.

Buying a home always remains one of the biggest and sweetest financial decisions that any individual makes. With a lot of legwork and other concerns included, most people don’t take care to ponder upon the financial resources they have got to buy the residential property. Such a thing usually happens with the first time buyers.

Outlined below are some home buying tips for the prospective first-time buyers on how to manage the home buying process smoothly:

• Never Rush Your Way towards the dream home

Your purpose to buy home can vary according to your personal and financial needs. It may be an investment in property to avail capital appreciation, a place to reside, or a source of rental income. Concerning all the factors, be clear with what intention you want your home to do for you. And, then narrow down on the kind of residential property you actually wish to see as your dream home .

• Financing the cost of your home

The specifics of your financing largely depend on whether you want to buy a home loan which is however one of the best home loan options available. A borrower has to maintain a long term relationship with a lending institution which may probably last for 15-20 years to repay the home loan amount. This emphasizes a need to ensure to pick the best financial institution that you trust and feel as affordable.

The other important factor to consider is home loan EMI (Equated monthly installments) which are believed to take out a large chunk of the borrower’s salary or monthly income in the wake of soaring interest rates on home finance in India. Saving adequate amount for a down payment usually requires some kind of planned borrowing. When choosing the size of the amount of housing finance, you should make sure to check the regular monthly payments you will have to make.

• Examining your proposed home's location

The cautious eye should always be there ready to examine your home meticulously before purchasing it. Some important things to look at include reliability of proper electrical systems and water systems, condition of the roof ceilings, walls, floors, and above all the security pattern of the area. Likewise, check the home surroundings before buying a home at any location. If you are planning to rent out the new house, see that your target market is ready to travel to accommodation.

• Make yourself familiar with the basic concepts of housing and buying

Sometimes it is difficult to understand the clauses filled with extensive legal jargon in the home loan agreement between the buyer and the lending agency. However, you can make yourself acquainted with the basic terminology such as built-up area, carpet area, and super-built up area and the differences among them with a moderate online search.

• Understanding Closing Costs

Always be perfectly informed with the closing costs of the real estate deal which may be 10-15% of the total transaction value. The cost comprise of stamp duty, registration charges, insurance, property taxes, etc.

With home loans in India getting expensive, it has become increasingly difficult for first time buyers to step a foot on the housing ladder easily. Despite all, the immovable property market in India has been making rapid strides forward and the residential property remains buoyant creating new prospects for potential first time buyers.