Buying a new home isn’t an easy task. There is a lot that goes into the investment process. From checking your finances and taking innumerable site visits to going through the legalities of signing the deal, the steps involved in buying a property can get a little taxing. However, there are ways to speed up the process to get your home faster. Read on to know more.
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Step 1: Check your Credit Score
Most potential home buyers opt for a bank loan to fund their real estate dreams. In order to get your loan approved in a short span of time, it is always a good idea to check your credit/CIBIL score online. Your credit score plays a vital role in getting your loan approved. A high credit score shows that you have no outstanding loans or monthly payments. It also helps in processing your home loan quickly as banks give priority to high score holders. The following are the general brackets for a good cibil score:
- Above 750: Excellent credit
- 700 to 750: Good credit
- 600 to 700: Average credit
- Below 600: Low credit
Step 2: Read up on home loans
Now that you know your credit score and have come to terms with the fact that you are eligible for a home loan, it is important that you educate yourself on the types of home loans available and the amount of coverage you will get as an applicant. Most financial organisations help in funding 80% of the property value which means you need to be equipped enough to finance 20% of the total price as a down payment. Apart from the down payment, make sure you set aside a good amount of money for the registration charges and legal costs involved in owning a home.
Also, you can either opt for a fixed home loan or a floating home loan as per your financial needs. A fixed home loan has a fixed rate of interest over a pre-determined period of time while a floating home loan has rates of interest fluctuating as per the market. However, a floating home loan offers a lower interest rate, so take your pick wisely.
Step 3: Start searching for a home
Before you set out to visit construction sites and take a look at short-listed properties, set a locality in mind. Check out the real estate investment hotspots in your town and scan the outskirts of your city for the best deals. Opt for a neighbourhood which provides you with all the social amenities and facilities needed and comes within the pre-fixed price range. It is also important to check out the appreciation rates of the area and look at the process from an investment angle. Filtering properties as per the locality will save you a lot of time and keep you focused on your search.
Step 4: Opt for a credible builder
If you want to speed up the process of buying a house, it is always a good plan to opt for a credible builder. A renowned property developer will make sure that all their developments are built from the best of raw materials and ensure hassle-free transactions. Lancor is one of the top real estate developers in South India with a reputed brand name and a plethora of premium projects.
Step 5: Sign the contract after a thorough inspection
Have a lawyer review your contract with the owners or property developers before you buy the house and complete the transaction. Before you sign the contract, make sure all the legal documents are in place. These documents include mandatory papers like the sales deed, occupancy certificate and the latest tax receipts to name a few. Ensure that there are no defects found in the house and perform a last-minute inspection 24 hours before closing the deal.
Step 6: Close the deal
After all inspections, verifications and payments, it is time to finally close the deal. Make sure that you get complete possession of the property and have it registered under your name. Ensure all legal costs like stamp duty and registration are paid for a smooth transfer of ownership.
Now that you know exactly how to speed up the process of owning a home, head out to Lancor for premium developments in the best localities in town. Also, make sure you check out our detailed blogs on five reasons why you should never delay a property investment and the financial benefits of moving into a ready-to-move apartment for a better understanding of the home-buying process.