Finance

Tips for first time home buyers

We understand the adrenaline rush that hits your young blood, as you finalise the first home of yours. The next step is to look for the right home loan for yourself! With an ocean of information around you, there is no denying that this is a daunting task. However, to help you start with the whole process, here are quick tips to assist you in the way before you finalise your home loan.

Size of the house
Now, why are we even talking about size of the house in home loan? This is because, if you end up buying a home much larger than what you need, you will end up taking another loan probably ten years down the line, while you are still paying your home loan. That’s two fat numbers! To simply put across – don’t take up something that you cannot afford.

Budgets and credit score
While Banks and other private lenders exist to provide you with the money, it is pretty obvious that they sustain their business because of you. It is always best to go for the most economical option when it comes to buying a house. You might like a house, but it may not fit your budget. There is no point in buying something beyond your budget, and you compromise on payment of other bills, which in turn reduce your credit score, and you know what happens next! A chain reaction of a wrong kind.

Second opinions
Before approaching lenders for raising home loan, get a friend or someone from your family that you trust the most and get their opinion about the house you are about to buy. Engaging a professional help is also a good idea, considering the money at stake is huge. There could always be something that you might have missed, which someone else could point out. Inspect and double check on every aspect. Remember a wrong purchase would mean that you cannot even sell that house. You will not just be stuck with that house but with a hefty loan and mostly ‘no home’ to live.