A Guide to Buying a New Home in 2022   

In India, many people dream of buying a new house; for some it is one of the most important milestones of their life. Today, the modern youngsters are ambitious and more than willing to buy a house; they see it as an important investment that can protect their family and as a capital asset that they can liquidate anytime they want. 

If you are a first-time home buyer, you may start doing your research about the different properties and the steps involved. Buying a new home is not as easy as it may seem; there are many vital things you must consider other than just choosing the right property that suits your needs. 

So, to help the first-time home buyers, in this write-up we discuss a few important tips that everyone must consider while buying a home in 2022. 

Assess your financial status and affordability

The first step in buying a new home is to assess your financial status and the maximum amount you can spend for the purchase. This in turn will help you determine the right housing loan amount you want to borrow. Experts suggest that the home loan EMI should not be more than 30% of your take-home salary. 

Prepare a budget and ensure that you don’t go beyond that amount. Some people make the mistake of buying a bigger house, only to eventually struggle with repaying the EMIs. You must buy a home that is affordable for you today and in the future. 

Check your credit score

When you apply for a home loan in Mumbai or any other city, the lender will definitely assess your credit score and repayment history as part of the loan evaluation process. If you have no or bad credit history, chances are that the lender may charge you a higher interest rate on the loan. In some cases, based on the lender’s evaluation of your financial profile, your loan application may be rejected. 

So, before you approach any lender it is a good idea to start building a good credit score. Generally, the lenders have a benchmark requirement, which ranges from 720-750. So, ensure that your credit score meets the lender’s minimum requirement. If your score is higher than 750 and closer to 900, you can negotiate with the lender and get a better offer on the home loan interest rate. 

Review the real estate market and the forecast

After a temporary slump in the 2020 due to the COVID-19 pandemic and the subsequent lockdown measures imposed by the government, the real estate market in India is slowly gaining momentum. So, before you buy a new home in 2022, it is pivotal that you study the current market trend and the future predictions.

This will help you make an informed buying decision in terms of the localities that have high demand for real estate property, localities that are slated to grow in the near future, and places that have witnessed a sharp decline. You can try talking to experts to know their views on the real estate market and invest in a property accordingly. 

Compare the home loan offers

While looking for the best home loan offers, make sure that you compare the interest rate from different lenders. The interest rate has a direct impact on the EMI amount and affordability. Also, compare the other charges levied by the lender and choose the one that offers the loan at the lowest interest rate and has lower charges. 

Final Word

Buying a new home requires proper planning. Use the above tips to your advantage and make your dream of being a homeowner come true.