Things You Should Do to Buy Home in 2018
Dec 07, 2017 Home Trading Steps
With GST, RERA in place, property prices are at the bottom, experts believe this is the right time to buy property for those who are waiting for long to have a home of their own. If you were also planning to buy your own home and missed 2017, then you can go ahead in 2018. The major reason being now that builders have started taking RERA seriously and getting themselves and their project enrolled, there are fewer chances of delayed delivery and getting cheated from builders. The buyers’ rights are now secured. Hence the market is not for investors now, it is for end users or buyers. So if you have prepared your mind to buy property, then here are some points that you should keep in mind while taking the big step in 2018.
1.Credit scores: keep a check on your credit score. Get your credit report from CIBIL (Credit Information Bureau India Limited) by submitting an online application for the same on the company’s website. The ideal credit score to be eligible for a home loan is above 700. And if your credit score is between 750-900 then nothing like it, banks will immediately approve your home loan request.
2.Credit card usage: keep a track of your credit card usage. Credit rating agency closely examines the payment habits and the outstanding amount of your credit cards. If there is any default in your payment schedule, it might have a direct impact on your credit score. This is one of the most crucial criteria for examining by credit rating companies. Do not keep on buying new cards, try to limit your credit card expenditure and spend as much as you can afford and make payments on time.
3.Check on your other loans: home loan refers to a huge amount. So before going for a home loan, it is better that you close your other loans first as this impact your credit score as well. And if you have existing other loans like personal or auto loans, in such case you won’t be granted a bigger amount which is usually required in home loans. In addition, closing other loans on time also improves the credit ratings.
4.Organise all relevant documents: this is essential! Make sure you have organised all the relevant documents required for the home loan which the bank could ask for anytime. The documents include:
Identification and address proof documents like voter ID card, aadhaar, driving license, passport etc
Form 16 or IT returns for the past three financial years
Permanent Account Number (PAN) card
Bank statement for the past six months
Three months salary slips
Appointment letter that is optional
Passport size photographs
If you don’t have any of these documents, then start arranging from day one.
5. Try for a pre-approved loan: if you can get a pre-approved loan then while looking for a home you can negotiate in a better way with the seller. You can tell him or her that you already have a loan in hand and you can pay immediately. You can push for a better deal as you have the amount in hand. But do remember that you need to arrange 10-20 percent amount for the down payment. So be prepared for that as well.
1.Credit scores: keep a check on your credit score. Get your credit report from CIBIL (Credit Information Bureau India Limited) by submitting an online application for the same on the company’s website. The ideal credit score to be eligible for a home loan is above 700. And if your credit score is between 750-900 then nothing like it, banks will immediately approve your home loan request.
2.Credit card usage: keep a track of your credit card usage. Credit rating agency closely examines the payment habits and the outstanding amount of your credit cards. If there is any default in your payment schedule, it might have a direct impact on your credit score. This is one of the most crucial criteria for examining by credit rating companies. Do not keep on buying new cards, try to limit your credit card expenditure and spend as much as you can afford and make payments on time.
3.Check on your other loans: home loan refers to a huge amount. So before going for a home loan, it is better that you close your other loans first as this impact your credit score as well. And if you have existing other loans like personal or auto loans, in such case you won’t be granted a bigger amount which is usually required in home loans. In addition, closing other loans on time also improves the credit ratings.
4.Organise all relevant documents: this is essential! Make sure you have organised all the relevant documents required for the home loan which the bank could ask for anytime. The documents include:
Identification and address proof documents like voter ID card, aadhaar, driving license, passport etc
Form 16 or IT returns for the past three financial years
Permanent Account Number (PAN) card
Bank statement for the past six months
Three months salary slips
Appointment letter that is optional
Passport size photographs
If you don’t have any of these documents, then start arranging from day one.
5. Try for a pre-approved loan: if you can get a pre-approved loan then while looking for a home you can negotiate in a better way with the seller. You can tell him or her that you already have a loan in hand and you can pay immediately. You can push for a better deal as you have the amount in hand. But do remember that you need to arrange 10-20 percent amount for the down payment. So be prepared for that as well.
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