High disposable income and easy availability of finance has made buying home affordable in urban India. With no dearth of projects around let us look at some smart tips which maximise your benefits.
1) Budgeting and Financial Planning
Plan your EMIs keeping in mind your monthly household expenditure and some amount for contingencies.
2) Need Assessment
Choose the property as per your need whether it is for raising your family, capital gains, rental income or maybe you want to move closer to your work place.
3) Interest Rate Options
Fixed or Floating: With Fixed option interest rate remains constant during the entire loan tenure and for floating loans it changes with market fluctuation.
4) Credit Score
Know your credit score before applying for loan. Credit bureau like CIBIL give you credit report if you apply online .If the credit score is low, the lender may not even consider the application further and reject it.
5) Pick the best lender
With plethora of options available do a thorough background research and pick the best deal based on better rates, processing fees turnaround time etc. It is also advisable to check the prepayment penalty and foreclosure charges.
6) Get A Pre Approved Loan
This implies that the bank or financial institution has carried out their due diligence checks on buyer’s credit report and have made a virtual confirmation of the loan and loan amount.
7) Research Locations
High growth area with better amenities such as connectivity to business areas, proximity to educational institutions, malls and hospitals gets you a better deal in the long run.
8) Builder’s credibility
This essentially means assessing the developer’s past projects, quality of construction and future projects.
9) Payment Plan
- a) Construction linked Payment Plan: Here you are paying an initial booking amount upfront while the rest is linked to construction milestones.
- b) Time linked: You pay according to a set timetable, whether the construction is on time or not even though the property has been delayed.
10) Legal Due Diligence On The Property
You must ensure that the builder has completed all legal formalities such as sanctions, plan approvals and agreements
11) Know what is sq. feet, built up and super built up
The carpet area is the space available for flooring a carpet, the super built-up area is the carpet area including the wall, balcony space and other areas. The super built up area is the super built area plus the corridor space including lobby, lifts, staircase etc, garage and alley.
12) Negotiation with builder
Sometimes builders offer promotional discounts during festive seasons or if their sales are slow. Don’t lose out on that. Also when buying a new property is the initial stages of construction, do enquire about special pre-launch and launch prices.
Are you sorted now? Good luck.