Buying a home may be the biggest investment decision in your life. It not only involves money but it also involves emotions, personal satisfaction and sheer delight. If you are planning to buy property, you need to take into consideration various factors. Purchasing a home is indeed a very big decision in your life. You should not make it go haywire by making wrong moves. You need to look into the following factors before making the purchase.
Your finances
Before purchasing a home, first and the foremost thing is that you should give a close look at your finances. Your affordability is crucial in home purchase. If you take out a home mortgage loan, then you will have to pay the monthly mortgage payments. You need to ensure that the monthly mortgage payment amount is affordable to you. In other words, the monthly payment amount should not put undue pressure upon you. Here, it is to be noted that you can take the help of an online mortgage calculator so as to check whether or not a particular loan program is affordable to you.
Property location
One important thing in property purchase is the identification of the property location. Property resale value depends very much on the selection of the property location. It should not be far away from the city center. Location of your property should be such that it gives good returns on your investments.
Loan criteria
Loan approval depends on various factors. Your income, down payment amount, repayment capability, assets, debts, age etc play vital role in your loan eligibility. Again, the loan eligibility criteria vary from lender to lender. So before taking out a mortgage loan, you must get the necessary pre-approval from your lender.
Other costs
You may not take out a mortgage loan directly from the lender. In fact there might be different intermediaries such as real estate agent, lawyer, surveyor, inspector in the home buying process. You have to pay fees to all the parties involved in the loan process. All these costs must be taken into consideration while taking out a home mortgage loan. Stamp duty and registration fees must also be taken into consideration before the purchase.
Social amenities
Another important factor that you must take very seriously is the availability of neighborhood amenities. Various social amenities such as proximity to hospitals, shopping centers, schools, parks, restaurants must be taken into consideration before taking out the mortgage loan to purchase a home.
Property insurance
Another important thing that you need to think seriously is the property insurance. You should have adequate property insurance in place so as to safeguard your property from calamities and damages. Here, it is to be noted that you have to keep aside a certain part of your income for property insurance purpose.
Purchasing a home is not a mere investment. It contains emotions, excitement and realization of a dream. So, do not make the home purchase decision in haste. Do adequate research and take into consideration the above discussed factors before making the purchase.