When buying flats in Chennai, you need to first make yourself familiar with the home buying process here. This article takes you through the whole process with tips to make it effective.
Pay off existing debt
Considering that a home loan might mean a major monthly financial commitment, it is best to relieve yourself of other debt. This may be in the form of other personal, vehicle or jewel loans, or the oft overlooked credit card debt. First, ensure that you are paying off these loans on time every month. This eases your home loan process as you are recognised as a credible borrower. The second part is paying them off before applying for a home loan as they can impact the eligible home loan value. You want the home loan to cover as much of the purchase as possible.
Analyse Credit Score
The Credit score is crucial in deciding your credibility as a borrower with any lending institution. You can check your credit score directly on the CIBIL website or you can engage the help of your regular banker. Some financial websites offer free Credit score reports. Understand how and why your credit score is the way it is. Ask your banker how your existing loans and other financial behaviour are impacting this score. This will help you remedy or spruce up the score, so your eligibility and home loan value are improved. Considering flats in Chennai are relatively expensive, you will need a great credit score to get the best deal out of your home loan.
Build the down payment
When you wish to buy a home, you need to understand that the home loan will not cover 100% of the purchase value. You need to have a minimum of 10% to 20% of the sale value and pay it upfront. This token advance is used to book the house against your name. Before you start the process, ensure that you have saved enough to cover this amount. Analyse your monthly and yearly expenses. Be mindful of wasteful expenses. Even the smallest of savings can have a big impact on realising your dream of buying a home.
Do your research
Buying a home needs to be an educated decision. You can’t just choose a random developer and buy some property from them. You first need to understand your own requirements.
- What kind of home do you need?
- What is your preferred location?
- What kind of facilities do you need access to?
- What amenities do you need?
- Are you looking to move in or rent it out?
- What is your budget?
- Does your budget meet the expectations?
You will need the answers to all these questions before you begin looking for a home. Once you decide what you want, then it’s time to research the different neighbourhoods, the unique advantages they pose, which developers have projects there, etc. Try to do some background research into the different developers and choose a reliable one. Check with the residents in the neighbourhood to understand how safe the location is, power and water supply there, how the location fared during natural disasters, etc.
Stick to your budget
Developers of flats in Chennai, offer a lot of amenities and opportunities. It is easy to get distracted by them. It is important that you remind yourself of your requirements and what your budget is. You may be tempted to stretch your budget for a few more amenities. However, you may not be ready to meet the monthly commitments that it poses. A bigger budget results in a larger EMI every month. You should be able to pay the EMI without impacting your other regular monthly expenses like groceries, education, insurance, etc.
Engage a real estate agent
Not everyone has the necessary resources and aid to do this research and make informed choices. In that case, you can take the help of a certified real estate agent. They keep track of all the projects and the developers. They act as expert guides to securing the best property and value for your money. They also know when developers offer discounts on their projects. They also help you secure good deals on home loans.
Lifestyle Housing is a reputed developer of flats in Chennai. Our projects are affordable, equipped with premium amenities. Our latest project offers economic 2 BHK flats in Porur. Our team assists the customers, guiding them to the best property for them. We also offer financial guidance and assistance through our partnership with nationalised banks.