Buying your dream home? Here are 5 basic boxes to tick  

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Summary

• Buying a home needs proper planning and financial assessment.
• There are multiple home-loan options available. Do proper research to get the best home loan as per your situation and needs.
• Be practical in setting a goal for home buying.

Buying a home is perhaps the biggest purchase that you ever make. It is both an emotional and a practical decision. The planning involves many emotions related to how the home should be, the location, design, and decor.

Buying a home is one of the most significant decisions in life, which needs to be planned well. One needs to put in efforts with a disciplined approach as it involves a considerable amount of money.

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The best time to buy property is probably right now as interest rates are at a historic low. So, if you are ready to take the plunge, start exploring the options.

Here, we have chalked out few of the necessary steps for buying your dream home.

1. Get real and estimate your eligibility: Start evaluating your financial position, job security, lifestyle habits, and dependents. Do budgeting to see how much is possible to save for your home purchase. All this will give you a reality check on where you stand and what kind of home you can afford with your current financial position, thus helping you define the goal.

What kind of home one can afford depends on multiple factors - credit score and credit report, financial and income commitments plus savings. If you have personal debts, it will not be easy to get the home loan approved. So, it is better to pay debts before applying for home loans. 

2. House price research:Spend some time researching the prices based on area, location, and other factors. It will give you an idea of what kind of home you can afford in real.

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3. Find the right lender:It is advisable to conduct thorough research of the home loan market as it is competitive and complex. So, to be sure that you are getting the best option, it is good to spend some time comparing the loans. The options comprise investment loans, interest-only and fixed-rate loans. Also, multiple types of mortgages are there.

Different lenders come with different conditions. For example, some banks might consider you a high-risk person, whereas others might be willing to offer you a home loan. Hence, it is crucial to find the right option as per your situation.

A home loan is a long-term debt. Hence the interest rate matters a lot, and even a small difference makes a big difference throughout the loan term. Also, getting a loan is a long process. For getting loan approval, the lender will ask for proofs of your current financial situation to understand your capability to repay the amount. Normally, the process takes 3-6 months and sets an affordable price range for the buyer and helps sellers know that the buyer is serious.

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4. Find a suitable house as per the decided budget and requirements: Once all the above steps are taken care of, the next essential move is to settle on the home of your choice. Be clear of the must-haves in your list, such as access to public transport, size, layout, amenities nearby, and what additional things you would like to have such as the outdoor location, fittings, and design. Many times, governments also introduce incentives and grants to encourage people to build new apartments and houses. You can also consider such options.

    5: Be well prepared for your dream home: Once you have zeroed in on your property, then you will get to know that others are also interested in buying the same property. One can follow a few tips to be the better candidate for the property - gather all the required paperwork, including pre-approval and deposits. It will help you in the process of negotiation and signing the deal.

Create a homebuying strategy in advance and go as per the plan. One can also take the help of professionals in the process. If followed correctly, all the steps make a huge difference in the process and make things systemised for you to execute and understand, consequently helping you to get the best deal out of the available options.

Also read: Responsible lending rules could soon roll back due to delays in home loan approval