You have saved for your down payment, but what are the other steps that you need to do to buy a house? Here’s everything you need to know.
In our last blog, we talked about the steps that you need to take while preparing to buy a house. In this article, we will be looking at the steps that you need to take after deciding what kind of property you are going to buy and saving for the down payment.
Check The Fine Print
Before buying your dream home, make sure that you have read between the fine lines and understood all the clauses, penalties, and implications. You also have to make sure you have calculated the additional expenses incurred in the price such as GST (Goods and Services Tax), Registration fees, home loan processing charges, etc, When you are reading the property document, check the delivery date. In case there is a delay in possession, the builder is liable to compensate you until they fulfill their commitment.
Also, check whether there is a penalty clause in case your EMIs get delayed for any reason. Try to find out if there are any hidden charges that have been implied that were not mentioned during the deal. You should sign the agreement only after carefully verifying all the terms and conditions in the agreement.
Choose A Loan
You might have saved money for the home down payment, but the remaining amount will be paid through the loan. The amount of loan granted is usually dependent on your income and is around 90% of the total valuation of the house. While choosing the loan, you must decide on whether you want a fixed rate of interest or a floating rate of interest.
In a fixed rate of interest, you will end up paying the same EMI until the end of the tenure, and it doesn’t get affected by market fluctuations. Floating interest rates are usually little less than fixed interest rates, and if interest rates in the market decrease, your EMI amount will also go down.
Know The Resale Value
Knowing the future resale value of the house is very important, as it will help you while selling the property in the future. You can research the surrounding area to find out the current infrastructure and also, find out if there are any proposed future development plans like schools, freeways, hospitals, shopping malls, etc., to be made. Your return on investment (ROI) will depend on the location’s ease of accessibility to these things.
Take A Property Insurance
It is a must to have home insurance in case certain damages occur to your property. The cost is relatively low and it offers coverage in case of problems with the property title, certain damages, or any legal issue. There are different types of property insurance, including fire insurance, burglary insurance, all-risk insurance, etc. Choosing the right home insurance will protect your property and also, make the buying process easy.
In The End…
Buying a house is a dream come true for many, so it is important that you pay attention to every small detail. Read the property document ten times if you want to, do research about the property as much as you can, and spend more time going over every detail. Doing everything in a hurry will not do any good, so it is imperative that you put a little bit more effort into this process.
We hope this blog was helpful to you, and makes your home-buying process easier. Buying a house is an expensive process, so if you are looking for a platform to build your wealth, you can try Koshex today! Koshex is a new-age wealth management platform that will design a customized investment portfolio for you based on your goals and risk tolerance. You just need to give a little bit of your details and our AI will create a portfolio for you. Head to Koshex now and create your account today!