Buying a Home is a big investment, and if you’re living on a budget, you can’t afford to make mistakes. That’s why, before you head to the dealership, you need to do your homework—because there’s nothing straightforward about buying a Home. Home salesmen are masters of the up-sell, and if you don’t know what you’re doing, you’ll walk out of there with a dozen add-ons you never meant to buy. You need to arrive with the tools in hand to outsmart the Confusion.
These four simple steps will give you a clear sense of what kind of Home you’re looking for and how much you can spend, and most importantly, they’re designed to give you the upper hand in negotiations.
4 Steps to Buy the Home You Want Within the Budget You Can Afford
- Calculate your Budget.
The most important data point to establish before seeking to buy a Home is how much money you can afford to spend. That means accounting for monthly payments, but also setting aside the funds for a down payment. You’ll also want to make sure you have a few months of loan payments set aside in case an emergency strikes because it’s going to take you a while to pay down your loan; today’s average loan is 15 years, but many run for 15 – 20 years because base prices on new Homes are so high.
In addition to budgeting for Home payments, you’ll also need to account for the cost of Stampduty, registration, and Gst. These finer details tend to be where first-time buyers slip up—the expenses pile up quickly, and they tend to be front-loaded in the period immediately around the date of purchase. Other costs like maintenance that aren’t included in the ticket price can also throw your initial calculations off, so be sure you know exactly what’s going to show up on your cost before you start looking for properties.
- Get your Home loan.
Once you know how much money you can spend on a Home, the next step is to get a loan—and just like Home salesmen, many loan providers will push you up against the limits of what you can afford. Don’t let them. Stick to the number you’ve calculated because when you’re approved for more, you’ll feel obligated to spend it.
It’s important to get pre-approved for your loan because it gives you control over the negotiation process. If there’s a property just out of your price range, salesmen are more likely to try to meet it with a special offer or discount because they know you aren’t going to spend more just because they put pressure on you.
Another advantage to getting pre-approved for a Home loan is that it gives you the time to shop around for loans and find the best interest rate. Just because you know how much you can afford doesn’t mean every lender will offer it to you the same way. For example, your bank may give you a better interest rate because you’re a loyal customer, or another lender may be having a special promotion. You have to compare all the options to minimize extra costs.
- Research best buying dates.
Over the course of the year, there are many major Festive offers like Gudi Padwa, Diwali, Dussehra, Makar Sankranti and many more days. But when is the best time to buy? This is a surprisingly complex question, but the best offer you can wait for Like NO EMI till Possession* where the Pre- EMI is paid by the Builder or an Subvention scheme is promoted by both builder and bank same scheme is floated by High Mont @ Hinjewadi, Pune .
Almost any Festive season will allow you to snag a good deal. Like anything else, though, you need to research pricing in your area and check additional resources for the best upcoming sales offer.
- Focus on your Need.
Finally, as you try to narrow down your options, it’s time to figure out what features you need in your new Home, and that means thinking about its purpose in your day-to-day life. For example, if you’re married and have kids to play around you can go for project which has good amenities Or, if you want to invest then you can go for a property where the location has high rental yield.
Depending on your budget, you may also have a chance to consider which property you want but don’t necessarily need. As you plan, you can narrow down the list of properties to ones that fit your pocket.
When you don’t know what you can afford and don’t have a plan, it’s easy to be take advice of your local Home Advisor ie, Prashant +91 968 979 0101. Now, by following these rules, you’re going to be a savvy buyer who gets what you want at the price you want.