The home-buying process is no easy feat; it is time-consuming yet a very fulfilling activity for home buyers. A lot of young people are investing in real estate nowadays as compared to yesteryears, where only retired individuals would look for properties using up all the savings of their lifetime. With profound changes in the socio-economic structure of the country, there has been a surge in property buying phenomena amongst the youth and middle-aged alike. With more stable jobs and fixed income, real estate tops the investment option for a large population today.
Buying a house for the first time is a mammoth task involving multiple steps. The home-buying process requires a lot of careful consideration, financial planning, and minute attention to detail. Be it buying a house for the first time or the second, the home-buying process is still a daunting task. Whether you are tired of just spending too much on rent or have just started living on your own, the reason could be anything! So here we are, guiding you through the entire home-buying process.
Home Buying Process – 7 Steps to Buying a House for the First Time
Analyze your Financial Condition
First and foremost, you should have a certain budget in mind for buying a property. The budget will also depend on the type of property you wish to invest in. It could be a 1RK, 1BHK, 2BHK,3BHK, 4BHK,villa or a row house. It is imperative to gauge your earnings, savings, and monthly expenses to fix a certain budget for purchasing a house. Check your eligibility to get a home loan and determine the down payment you can provide.
Finalize a Location:
The second step is to select a location based on your choices and budget. The considerations for choosing a location are-
- Proximity to workplace
- Easy commute to schools and colleges for kids(if any)
- Rate of property in that area
- Safety of the neighborhood
- Availability of nearby necessities
- Amenities provided by the builder
- Future development prospects
Check your Home Loan Pre-Requisites
The builder’s team will guide the buyer with all the information related to financing the property. The team will also give you contact details of the agents from various banks who will help you in the home-buying process. Various complex steps are involved in taking a loan. The bank agent will make a file and do a thorough study of how much a loan can be financed based on your personal finances.
The buyer will have to complete the formalities of the bank and submit documents like identity proofs, income proofs, address proofs, and property documents for pre-approval.
Go House Searching in the Shortlisted Area
After finalizing the locality, an integral part of the buying process is searching for the right property that matches your criteria. It is a hectic task because you need to physically visit these properties and look at sample flats(if it is an under-construction property) or a ready-to-move flat (if it is a resale property or ready-to-move property). Make an appointment to visit these properties or simply do a walk-in to gather more information about the property. Visit numerous properties to compare the property conditions, amenities provided, location advantages and disadvantages, and suitability for you and your family.
Finalize the Property
After relentlessly searching for properties, you’ll know which one fits your budget and preferences. The home buying process is a lengthy process and might take weeks or even months to finalize. Builders are open to a little negotiation, so make sure to make the most of it. Negotiate the price and terms with the builder’s sales team, and you might actually be surprised at what they offer you sometimes.
Also, conduct an exhaustive study of the property’s legal paperwork, including title deeds, ownership documentation, and approvals from local authorities. It is also important to validate the property’s land status and ownership records.
Also Read: How To Choose The Right Builder? 6 Important Factors to Consider
Signing it Officially
The most important step is to sign a sale/purchase agreement with the seller that defines the terms and conditions of the property sale. Though the home-buying process is lengthy and becomes quite tedious, it is the time when you finally taste the sweetness of the hard work that has gone into it. You will get the ownership of the property in your name, and what’s better than that? It is time to conclude the sale deed or conveyance deed with the seller and get it registered at the local sub-registrar office to make it yours officially.
It is pivotal to provide precise and correct information about both the seller and the buyer, as well as the property being sold, to avoid any future discrepancies. This property sale agreement document makes the buyer the legal owner of the property being purchased.
The agreement consists of many clauses that need to be covered. A sale agreement definition in its totality in a physical certificate must include the following information:
Names of both the parties i.e., seller and buyer, their age, and residential addresses
- Date and location of execution of the agreement
- Competence of involved parties to enter into the agreement
- Rights and liabilities of the parties involved
- Place and type of the property
- Payment structure
- Title deed, etc.
Take Possession of the Property
As per the agreement, the handover of the property is scheduled. The initial payments are to be made, and paperwork has to be ascertained to look for any pending points of action from the buyer or seller’s end. When all payments have cleared, the seller initiates possession formality of the property as per the agreed timeline. All transfers of utility connections (electricity, water, gas) are then made to the buyer’s name, and the buyer can then update his/her address in all government records following the procedures.
Now that you’ve figured out the integral steps of the home-buying process don’t wait anymore. Make a life-changing decision and buy your dream property with Vision Creative Group.
