banner banner

Stay Up-to-Date with Our Blogs & Articles

The texts on this website have been translated using an automated translation tool and its accuracy cannot be guaranteed. We recommend referring to the English version of the content for the most precise information. In the event of any disputes or inconsistencies, the contents in the English language shall be considered final and binding. IIFL HFL disclaims any liability or responsibility in this matter.
Go Back to Main blog page

Home Buying Process- Selecting a Good Property and Managing Finances

By Abhishikta Munjal | Published On Mar 22 2023 6:15 AM 1 min read 67 views 937 Likes
Share on
banner

Every individual dreams to own a home; however, purchasing a home is not a child’s play. When you plan to buy a property, you must go through the different stages of selecting the location, bargaining a deal, arranging for finances and much more.

But, if you chart out your plan well, you can eliminate all the hassles and confusion and ease the home buying process. Here are the two primary aspects of home buying – selecting a good property, and managing the finances – that you should focus on to make the home buying process smoother.

Finding the Right Property

A good property cannot be defined, as every individual has a different preference depending on his/her needs. For a young individual, the best place to buy a house could be near his corporate complex. A family with kids can ask for the house near the school. One can even be looking for a property in the outskirts of the city. The need for big or small house depends on the family size and personal preference. With work-from-home being the new normal, lot of people are looking for properties with separate space for a home office. Decision for ready-to-move-in or under construction property depends on the immediate and future needs of a person.

Finding a Good Real Estate Agent

Apart from getting you a property of your choice, a real estate agent through his experience, and market knowledge will even have an idea about the neighbourhood, available amenities, proximity to nearby locations, and transportation facilities. As a matter of fact, a good real estate agent might even help you in bargaining a good deal.

Some of the means to find a good real estate agent would include market study about the agents, visiting some property portals, check ratings of the agents on the internet, reference from your known.

Managing Funds

It is often seen that people end up spending all their savings while buying a property. One should always remember that buying a home should not dilute all your savings. You should always maintain an emergency fund for any unanticipated situations. As a residential property is a non-liquid asset, it is not a cakewalk to sell off the same and pull money out of it.

Similarly, it is not recommended to take a huge loan at a hefty EMI. A good home should fit into your budget. There are after-costs which are always associated with the property including construction cost, interiors, regular maintenance, etc. You should take a loan in a manner that paying instalment does not hamper your monthly budget.

Preparing a Budget

Based on the earning capacity, savings, availability of liquid assets, future earning and expenses, one should prepare a budget to decide the ratio between self-funding and borrowings. 

Once you have decided on the borrowing amount, the next step will be, to decide on the financial institution which would walk with you towards achieving your dream home.

Before finalising a financial institution, you should look at various factors such as customer centricity, turnaround time, rate of interest, market presence, transparency, digital convenience, home service, minimum documentation, ease of processing, etc.

Getting a Home Loan Approval

Ensure the following parameters to get a home loan for buying your dream property

  • Maintain a good credit score. Credit score can be defined as a report of all the loans availed and their performance throughout;
  • Finalised property should not have major legal and technical deviations;
  • Your income should be supportive of the loan requirement. You can add your spouse’s income to increase the loan eligibility levels, if required, by making him/her as a co-borrower to the loan structure.
Share on

Tags

apply loan

Quick and Hassle Free Loan Processing

green ad
Prelude to Building Green - IIFL Home Loan's Guide to Sustainable Affordable Housing
Download report

Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.