How to buy a home in 2022
How to buy a home in 2022
How to buy a home in 2022: If you decide to buy a new home, you need to tick some important boxes. The key to realizing your dream of becoming a homeowner is to be financially disciplined and make informed choices. Read on to know some tips for buying a home in 2021.
The launch of the COVID-19 has had a huge impact on everyone since its inception. It has not only caused thousands of deaths worldwide, but has had a huge financial impact on the economy as well as individuals. Many are facing pay cuts, forcing them to review their current and future financial goals.
In that case, if you are thinking of buying a home in 2021, you should plan your expenses well. The following tips can be very helpful:
Choose the location of the property wisely
Often the value of a property depends on its location. In general, properties in urban areas are more valuable than properties located in remote locations. When you plan to buy a new home, you should choose the location wisely. The area should have good infrastructure, and the place should be easily accessible to all. Experts recommend buying a home in a location that is the next suburb so you can finally get a good resale value for the property.
Prepare a budget
One of the most important steps in buying a new home is to create the right budget. This will help you figure out how much you can spend to buy a home after your monthly expenses have been met. Having a budget will also help you understand the maximum you can borrow so that you can afford EMI.
Compare loan offers
Once you have zeroed in on the location and property, the next step is to choose the right lender. Today, with financial institutions offering online services, the online application process for home loans has become easier than ever. When you apply online, you can compare various online offers and make an informed choice.
Know your eligibility
Different lenders have different eligibility criteria, and while choosing a lender, you should ensure that you meet their specific requirements. Generally, lenders have the following criteria:
- You must be a resident Indian.
- You should be between 21 to 65 years of age while applying for the loan.
- For loans up to 30 lakhs, you can get a loan of up to 90% of the maximum property value. For loans ranging from ₹ 30 lakh to ₹ 75 lakh, you can get up to 80% of the property’s value.
- You must have a steady source of income.
Beware of the charges involved
When you apply for a home loan, you have to pay several charges in addition to the interest rate. And one of the most significant costs is the loan processing fee.
When processing fees vary from lender to lender, lenders often charge up to 0.50% of the borrowed amount. In addition, you will have to pay other charges like property valuation fee, prepayment fee, documentation fee etc.
Make sure you compare the fees of different lenders and choose the one with the lowest fee as this will help you reduce the cost of your overall loan.
Take advantage of the benefits of PMAY
Pradhan Mantri Awas Yojana is an excellent government initiative that provides interest subsidy for home loan applicants. Make sure you check your eligibility for PMAY and apply for a loan under the relevant category and get the benefit of interest subsidy. This helps you reduce the interest burden but also simplifies the payment.
Last word
Buying a home in 2021 requires careful planning and prudence in your finances. Make sure you thoroughly review your finances for purchases and loan repayments and avoid making any hasty decisions.
