Buying a home is considered one of the most important milestones in a person’s life. For most people, it is one of the proudest moments in their lives. Having proper guidance before buying your dream home can be highly beneficial. It saves you from too much stress and anxiety caused during the home-buying process.
Common Homebuyers Mistakes in Bangalore
Budget Planning:
Having a clear vision of how much you can spend for your perfect home is crucial. Without a clear budget, one might end up overspending and exerting considerable financial stress.
Legal Clearances:
Failing to research and verify the legal status of the property and necessary approvals may create future disputes. This will add unwanted stress which could be avoided if you do the legal checks before buying a home.
Hidden Costs:
Make sure that you are aware of all sorts of charges and additional costs added while buying a home. When you look at the final bill, you shouldn’t be caught off guard. In addition to what you have already considered, there may be registration fees, stamp duty, and maintenance charges that increase the total budget.
Resale Value:
Make sure that you gather information about the value of the property and if it will be beneficial when you sell it in the future. If the property is very unlikely to be sold for a good price, it will be hard to sell it. To avoid any regrets in the future, do a thorough home inspection. This helps you to be aware of any hidden repairs and extra costs that you may face to pay for the repairs.
Read Agreements Carefully:
Failing to understand what information is being put forward in a sale agreement may later cause some issues. Failure to consider future needs-for example, future changes in family needs such as space or location.
Steps to follow during the negotiation phase before buying a home
Study Local Pricing:
Purchase price and value of properties in one town can be quite different from those in another town, and even within one town, from one neighborhood to the next. It is important to understand what other people are willing to pay in the locality for similar properties (location, size, age of property). It will help determine fair market value.
Upcoming Infrastructure Developments:
Check if the region has future development including metro lines, and highways, which will eventually boost property value soon.
Legal Status of the Property:
Ensure that the property has a clear legal title and there is no pending litigation. Properties with some legal issues or unclear ownership are often cheaper, but they soon lead to different major problems.
Check the RERA Status:
Verify RERA Registration: The Real Estate (Regulation and Development) Act, 2016 (RERA) requires all real estate developers to register all their projects under RERA. Confirm that the property you are purchasing is registered under RERA. It offers necessary legal protections, like safeguarding you against builder delays, and also verifies through the website of RERA about the status of the project, compliances, and reviews.
Know the Stamp Duty and Registration Costs
Stamp duty is a cost that one must incur while purchasing property, though this varies according to the state, between 4% and 7% of the value of the property. Discuss Registration Fees. IT will normally be at an approximate range of 1% of the value of the sale but may vary based on location and state laws. It is very important to understand who would bear this cost in the negotiation-buyer or seller.
Negotiate the payment schedule
If you are buying from a contractor or developer, negotiate a good payment schedule. Perhaps you might get him to agree to accept payments on milestones, say after every stage of construction rather than an enormous upfront payment.
Possession Date:
The possession may be done in a very quick manner as the property is ready for occupancy or if construction is still on, completion dates and delays penalties, etc.
Inclusion of Repair and Renovations Costs:
If the property is used or requires some form of repairs, then the question you can raise would be to have those issues fixed by the seller or even negotiate your price, considering the amount of repair needed to set that property. This can be a very useful point in scenarios where the property might be an older house or a resale property. In case your dream house requires renovation, you can bargain on the lowered price understanding that you will spend a lot on the upgrade.
Carefully read the agreement:
In India, sales deals usually have a sale agreement. Study every detail of the agreement carefully. A proper sale agreement would mention all terms and conditions, including terms of payment, date of possession, and any kind of warranty or guarantee.
Check Encumbrance or Liens:
There should be no encumbrance on the property (in the form of any mortgages, pending dues, or other legal disputes). You can get a Title Certificate from a lawyer or the sub-registrar office to confirm if there are no legal claims on the property.
Encumbrance Certificate:
Get an Encumbrance Certificate (EC) that your lawyer would apply for to ensure that the property does not have any financial liabilities. This can be obtained from any sub- registrar’s office in the locality.
Role of credit score while taking home loans
Checking your credit score before applying for loans is important. Having a good score means that the interest rate that you pay will be low. Lenders give better interest rates to customers with good scores since they view them as having a lower risk. A better score can save you in interest over the life of the loan.
On the other hand, if your score is low, lenders may give you a higher interest rate for the loan since their perceived risk of lending is higher.
Loan Approval:
Credit scores are a form of short-lived intuition the financier feels by deciding whether your loan application should be approved or declined. With a bad credit score, you are bound to be declined or asked to present more evidence or documents of capability to finance.
Loan Terms:
Checking your credit score before applying for loans is important. Having a good score means that the interest rate that you pay will be low. Lenders give better interest rates to customers with good scores since they view them as having a lower risk. A better score can save you in interest over the life of the loan.
On the other hand, if your score is low, lenders may give you a higher interest rate for the loan since their perceived risk of lending is higher.
Credit Score and Loan Limits:
A good credit score will allow you to qualify for a huge amount of loans, given other parameters such as income and debt-to-income ratio are met. You may be restricted to lower amounts that you can borrow in case you have a poor credit score.
Quick Approvals:
If you have a good credit score, then the application will probably go through more quickly since he or she feels you have a good chance of paying back. Thus, a lower score might trigger more verification or delays in the processing of your application.
How to improve your credit score?
Pay dues on time:
Once you get your paycheck, first pay all of your dues to make sure that you maintain a good credit score. On-time payment of credit card bills, EMIs, and loans increases your score.
Pay outstanding debt:
If you have outstanding credit card debts or loans at high levels, pay them off since this will boost the level of your credit score.
Keep credit utilization low:
Strive to use less than 30% of your available credit limit. Monitor your credit report periodically. Errors in your credit report will also lower your score. If you have discovered some errors, check with the credit reporting agency immediately.
Conclusion:
It is crucial to make the home-buying process easy by keeping all of the things mentioned above in mind. By following the homebuying tips Bangalore mentioned above, the home buying process will become much more smoother and hassle-free. To get details about some of the fastest-selling properties in Bangalore, reach out to Bud Realty, one of the best real estate agents in Bangalore.
Add comment