5 Things to watch out for When You’re Buying a Home

A home loan can be a great source of finance to purchase your dream house.

Why? A sudden surge in funds is readily available, and you don't need to utilise your savings. Of course, there is some protocol to follow along the way, and a lot of mistakes to be made.

Here are a few of the mistakes you need to avoid to help you progress from the stage of being a loan to a happy homeowner.

Not Checking your Salary

First off, you must be clear on what you can afford. Taking a home that exceeds your ability to pay the EMIs can be stressful on your monthly income.

Make an assessment of your monthly income. For this, you'll have to add all the money you spend on expenses, utility bills, maintenance charges, and basically every little cost that eats away at your salary. Once you've done that, subtract it from your overall salary.

The figure you get will give you a brief idea about the EMIs you can afford to pay, while keeping a portion of your funds aside in case of an emergency.

The lenders might make promises of giving you the best home loan Emi calculator and tell you that it's affordable, but don't strike a deal immediately. Look around for a few more policies and calculate the estimated expenses before taking the leap.

Thinking you know it all

Don't make hasty decisions without consulting anyone. Members of your family and friend group may have some experience dealing with a home purchase before, so it's always a good idea to talk to them for any tips they might have.

If help doesn't seem to be within your social circle, there are always financial experts with the knowledge of how these loans work. They'll be able to guide you through the process by explaining the house loan Emi calculator eligibility and advising you on your loan amount and choice of property. These professionals also excel at networking, which might be useful in finding the right deal.

Ignoring your Credit Score

The lender is going to scrutinize your candidacy for a Emi calculator application, so be ready for it. You don't want your application to be rejected after searching for the ideal home and finding the best deal, do you?

In that case, bring your credit report and submit it to the lender. This document is important as it determines the likelihood of you being able to repay your debt.

Forgetting to Lift the Curtains

If the Emi calculator amount, eligibility documents, interest, and an affordable house are the only things on your checklist, you're missing out on crucial component-hidden charges.

Article Source: http://EzineArticles.com/9370164