5 tips to keep in mind while buying a home

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5 tips to keep in mind while buying a home
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• It is natural. All homebuyers would have felt it.
  Why not? It is one of the most important and
  biggest financial decisions of anybodys life.
  When the stakes are so high, it is bound to
  affect us, we do get nervous, but also excited at
  the same time because buying a home is a big
  achievement too. So, we at CreditVidya.com
  decided to pen down a few tips to help you tide
  over the jitters.

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• When Archana Menon, a Bangalore-based techie
  bought a plot nearYelahanka, an upcoming suburb
  near the new airport, she was ecstatic. But when
  she finalized on her lender to construct a home
  on this 2000 square feet plot, she started
  feeling the butterflies in her stomach. Oh, it
  was but natural.

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• Archana had saved about Rs 20,00,000 over seven
  years of her career. This, she spent on buying
  the plot. She somehow managed to garner the
  margin money to build a 3600 square feet house.
  When I applied for a loan and it came through I
  was not worried so much. When I had to sign on
  the dotted line, I started feeling the
  butterflies in my stomach. A kind of doubt crept
  on my mind, if I was doing the right thing by
  taking a loan.

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• So here are a few things to keep in mind while
  buying a home

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Think through your decision

• When you are deciding to buy a home, take
  sometime to think through your decision. It is
  important to understand the pros and cons of
  taking a home loan. Do you have enough to make
  the down-payment?

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Understand the market

• It is important to study the market before you
  take the plunge. Is the real estate in your
  citydoing well? If you buy a house, will it
  appreciate over the coming years? If yes, by how
  much. There are many ways to find answers to such
  questions. Read real estate blogs, articles and
  indices. Keep yourself updated with latest trends
  in real estate.

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Check your financial situation

• When you take a mortgage, half your net salary
  may go towards the payment of yourequitable
  monthly installment (EMI) for your home loan.
  Will you be able to sail through with remaining
  half? Along with EMIs, you will have to think of
  savings for kids education, retirement plan and
  emergency fund. So evaluate your income, savings,
  investments and expenditure before you think of
  buying a home.

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Evaluate your savings

• After you buy a home anything can happen. You
  could lose your job, the salary of which was
  being used to pay for your EMI. There may be a
  family emergency, which requires you to divert
  your funds. There may be a big home repair
  running into lakhs of rupees. So it is important
  to build a contingency fund. We at CrediVidya.com
  always advice our customers to keep a back up of
  six-month EMI, so that in a job loss situation,
  it gives you a window of six months to get back
  on track.

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Listen to your instinct

• If something tells you not to buy a house now,
  dont buy. Sit back and think through. Do not
  yield to the external pressures and take a
  decision in hurry.
• So, sit back and relax. Rethink your decision of
  buy a home after following the above-mentioned
  tips. Live a financially healthy life.

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