Things You Should Keep in Mind While Buying a New House

Because homes are emotional purchases and make you fantasize about life with your loved ones, you should take all the necessary precautions before you buy one. The property price keeps increasing day by day, and it’s quite tricky to manage your finances while purchasing a new house. Here are several things you should keep in mind while buying a new house:

Dos of Buying a House

Try to Maximise the Down Payment 

 If you’re planning to buy a house, the first thing you should do is arrange for a down payment. Lenders and mortgage companies generally require this amount to secure a mortgage loan. The larger your down payment, the lower the monthly mortgage payment will be and the lower your interest rate will be.

Down payments vary depending on what type of property you want to purchase: single-family homes, condominiums, or townhouses. You may also need to make other arrangements with the lender, such as paying extra fees or closing costs that would otherwise be deducted from your monthly mortgage payment.

To get your down payment ready, you can look for the best savings plans in India to save money while it keeps growing with the interest that you earn with it. 

Do Check your Credit Report and Keep Your Credit Score Up

 If you are planning to take a loan for a new home, you must check your credit report and keep your credit score up. If you have bad credit, you could be rejected for a loan and find it difficult to get one.

It’s not necessary to have perfect scores — but having a credit history that looks good can help you get a better interest rate on your mortgage.

If your credit report shows any errors or discrepancies, contact the reporting agency and have it corrected. Keep in mind that having a good credit score is not easy as it seems. You should have been paying off all the bills from time to time which would help improve your credit score over time.

Always look for RERA-approved Properties 

It’s always a good idea to look for properties that are registered under the Real Estate Regulator Act. The RERA was passed to protect the interests of people who are buying or selling a new home, which will lead to an increase in investments in the real estate industry. 

It ensures a fair transaction between the seller and the buyer of a particular property, keeping both their interests in mind. One of the significant features of this Act is to provide a unified legal regime for purchasing flats, apartments or other properties, ensuring a standardised practice throughout the country. Therefore, selecting RERA-approved property is a must when you are buying your new home. 

Be Aware of the Taxation Benefits

You can avail of tax benefits under sections 80(c), 80 EE, and 24(b) as per certain acts and reforms implemented by the government. Get in touch with your tax consultants to find out whether you are eligible for these benefits and ask for their help when you want to avail them. 

In a home loan, interest payable up to Rs 2 Lakh is deducted from your total gross income while computing income from self-occupied house property. This is applicable only in cases when the acquisition or construction of the house is completed within three years from the end of the financial year in which the person took the loan. 

Don’ts of Buying a House 

Buying a house is a big decision, and it’s important to make sure you’re making the right one. One thing that can help you with this is knowing what things you shouldn’t do while buying a new house.

Here are some things you shouldn’t do while buying a new house. 

Avoid Buying a House When You are in Debt

Buying a house can be a very stressful experience. If you are already in debt, you may want to avoid buying a house because it can be challenging to pay off the debt when you are not making enough money.

You must also keep in mind that mortgage payments are not only for the home but also for any other expenses that come with owning a home. You will need to make sure you will have enough money for all of these expenses before deciding on whether or not you want to buy a house or not.

Avoid Buying a House You Cannot Afford 

Buying a house is one of the most significant investments you will make in your life, so it is important to make sure you get the right house for your needs.

You need to consider many factors before buying a house, one of which is affordability. You should avoid buying a house that you cannot afford at all. It can be very difficult to rent or sell your house once you have purchased it, so avoid going into debt by buying overpriced houses.

When looking at houses to buy, consider the location as well as the size and amenities of the home. A good rule of thumb is to spend no more than 30% of your annual income on housing costs.

Don’t Miss Out on House Inspection

 You don’t want to buy a house if the seller doesn’t want you to have a home inspection.

This is because a home inspection is one of the most important steps you can take before buying a house. It will help you find out whether the property is in good shape or not, and whether it has any hidden problems. If you notice anything wrong with the property, it will be easy for you to fix them without having to pay for expensive repairs later on.

It is also possible that some things weren’t mentioned during the inspection, such as asbestos or lead paint in the walls or other toxic materials on the property. You should ask your real estate agent about these issues when they happen and make sure that they are taken care of properly by whoever lives there now.

So, what do you think about buying a house? Are you going to consider the options mentioned here in your quest for buying a new home? The whole process can be time-consuming and tiring. However, following these tips here should make it a little less complicated!

Author Bio: Naina Rajgopalan has a thing for numbers and a deep fascination to learn about all things finance. She’s been money-wise from a young age and has always shared her knowledge and tips with those around her. Being a part of the content team at Freo Save, a neobank that offers a 7% interest rate on savings along with benefits such as insurance on balance, safe & secure banking, and so on, Naina stays updated with the latest on what happens in the banking and fintech industries. She has taken it upon herself to share her knowledge with readers across all walks of life to help them manage their finances and budgets better, so they can make better decisions while spending, borrowing, investing and saving.