Buying a house is a monumental investment. It’s important to know about housing loans, home loan eligibility, and other factors.
Here are some questions that you need to consider.
1. Are you aware of all the costs involved?
Once you have taken a look at home loan eligibility, factor in the add-ons and then go for a home loan EMI calculator in order to have a clear idea of all the costs involved.
2. How long has the house remained on the market?
If a house has remained on the market for a long time, it has probably not been sold because of a high price, or because something is wrong with it. The seller might agree to negotiate. That way, planning for a housing loan becomes easier.
3. What were the previous selling prices?
Previous selling prices will give you an idea of the ups and downs in the market. It would be easier to plan your housing loan once you know whether the seller is willing to negotiate
4. Have you made the ‘rent vs purchase’ comparison?
Renting a house often seems to be more beneficial. It might become easier to deal with the EMI once you calculate down payment, home loan interest rates, the expected appreciation and rent for similar houses in the area.
5. Will you be able to afford the housing loan EMI?
If you avail a home loan, it is important to understand the risks associated. A home loan EMI calculator will give you an idea of what happens if the interest rates go up. When home loan interest rates go up, EMI remains the same but tenure gets extended.
6. Would you have to forget about other life goals?
People buying a house often have to give up on other goals in life due to the high home loan interest rates. Thus, it is a good idea to use a home loan EMI calculator that will help you manage your financial plans better.
7. Is a contingency fund part of your plan?
A financial emergency could become a problem since you would already have EMIs to deal with.
8. How long will you live in the house you buy?
If you plan to buy a house to spend the rest of your life in, it would be crucial to evaluate the location, its positives and negatives.
9. Will they deliver the house on time?
If the house is not delivered on time, you may lose out on the added tax benefits of the housing loan.
10. What if you lose your job?
While you need to look at home loan eligibility and home loan interest rates, it is also necessary to have a secured plan for your family that covers basic needs and outstanding loans.
Buying a house is a life-changing decision. But once you’ve covered all bases, don’t waste time in applying for a home loan. A housing loan from a reputed financial institution can aid you in the process of purchasing a home or even constructing one.