Buying first home is always a dream for everyone. Obviously one gets freedom to decorate, have big rooms and other living space etc. We know that switching from one house to another is always stressful. But when one move to his own house, then the feeling is exhilarating.
Especially for a first time buyer, buying a home is the most important investment. Many sentiments and pride associated with it. A number of questions arise in the mind and sometimes this process lands home buyers in more panic state.
So here are some simple steps which will help first time buyers to get their home in a year. This 12-month timeline will help you in solving your queries like interest rate or getting stuck with the wrong house:
First Three Months
Start with checking your credit score: Your credit score used to play a decisive role in buying a home. In India, CIBIL provide complete details of your credit score. So it’s important to check your score long before you’re ready to make an offer. And work diligently on it.
Determine what your pocket allows: Figure out how much you want to spend on buying home. At last your CIBIL score will tell you how much loan you will get but sometimes some lenders also make you fool in providing loan and this will land you in great trouble. Ask yourself, how much house do I really want to afford?
Make a down payment and EMI calculator plan: Plenty of EMI calculators are available on the internet. This will help you determine what you can afford. If you’re pushing the limits, start reducing your debt-to-income ratio now.
The Next Three Months
Make a checklist of what you want in your home: Now that’s the most important part. Is the home near to your work place? Whether it has big balconies? What is the floor plan? How big are the rooms and kitchen etc.? If you focus on your priorities then you can buy a much better home.
Research neighborhoods: Here property listing sites comes into use. These website help you in finding out the neighborhood areas, proximity to public transport, markets etc.
Make Budget for other home buying expenses: Buying a home also has some miscellaneous upfront costs like a home inspection, title search, property survey, and home insurance etc. Costs of these expenses vary from location to location. So start saving now.
The Next Five Months
Start collecting your loan requirements: Loan paperwork plays a very important role in the whole home buying process and banks are very particular about it. So write all the papers you need and make a checklist. Once all the papers are ready tick on the checklist.
Start looking for right realtors: Start interviewing specifically buyers’ agents as they will help you in finding out the best and right property.
Get pre-approved for your loan: At this point, if you’ve been following this timeline, your credit score, paperwork, and down payment should be on track. You’ve done your research on lenders and buyers’ agents. Now it’s time to start working with them.
So start with your loan getting pre-approved. Make an appointment with loan bankers and bring all your paperwork. They will check all the papers and start the procedure of loan approval.
Start shopping for your new home: Once your loan gets pre-approved, agents will start telling you about your budget home which falls in your price range. It usually takes at least four to six weeks to finalize on a home as it need proper inspection.
The Crucial Last Month
Triple-check: All your financial documents are in order and review all loan related documents before closing.
Get your home insured: Don’t forget to secure insurance before closing and keep all these documents in your file.
A final walk-through: Make a final visit your home. Check the condition of the selected home. Has all the basic work is done or not? A regular check will help you in avoiding last minute panic situations.
With these simple steps your home is just a year away from your hand.