5 Things First Time Home Buyers Should Know BEFORE Starting Their Search

5 Things First Time Home Buyers Should Know BEFORE Starting Their Search

Buying your dream property is not an easy task and it becomes even more complicated if you are doing it for the very first time. You are prone to make mistakes and take wrong decisions when you buy your first property. This is the reason why decided to make this guide. This will help you in understanding the issues and take a well educated and correct decision.

1. Finalize your requirements

You have to first analyze and decide what is your requirement. Some of the questions which will help you in determining the requirements are

  • Do I need a 1/2/3 BHK?
  • Do I need an individual home or an apartment?
  • If apartment, should I look for gated communities and big complex or small apartments which has got less than 30 homes?
  • When do I need the home to be ready for possession?
  • Do I need covered car parking?
  • Do I need a separate Pooja Room/store room?

Once you come up with the answers for the above questions you can finalize what kind of home you are planning to buy.

2. Plan your Budget

Once you have decided the type of home you need, then you can’t directly start searching. You need to work out your finances and come up with an estimated budget for the property that you can afford. You can’t have a strict budget, instead come up with a budget range. Eg: 20-25 Lakhs for a 2BHK apartment. When finalizing the budget, do consider your income potential for the next 2-3 years and plan accordingly.

3. Know your Loan Eligibility

This is a common mistake which most first time buyers commit. Before you start searching for the property, consult 2 or 3 financial institutions and know your loan eligibility. This depends on a number of factors like

First-Time-Home-Buyers1

  • Your Monthly Income
  • Whether it’s a new or old property
  • Your Credit Score

Do spend some time in knowing your eligibility before starting your hunt.

4. Location

This is the most important decision you should make before starting your search. If you are buying your first home, then it means you are a working professional and have started your career. Location can be chosen based on the following ideas.

  • Located near your Workplace for easy commute
  • Located near your spouse’s workplace
  • Located near your spouse’s workplace
  • Located in a serene and calm residential area but away from your workplace
  • Located near your child’s school.

You need to take this decision based on which part of life you are on right now. If you have a kid who is going to join school in the near future, then it is advisable to buy the home near his school. There are some schools which have this as a condition for getting admission. If you have just joined work and not yet married, then buying a property near your workplace is a sensible thing to do. We already published detailed study about best localities in Chennai for investment.

5. Purpose

You need to decide why you are buying this house. Possible options could be

  • Self Occupation
  • Investment – rental Income
  • Vacation home

You need to decide on this before starting your search.

Listed above are some of the important guidelines which will help first time home buyers to invest in a good property. You can find 10000+ properties for sale in Chennai using Directowners.

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