The financial aspect
One of the priorities when buying a home is a reality check of financial readiness.
It all comes down to a few frank assessments. Begin with your present financial situation, calculate your current income, your savings and investments and your credit score. Arrive at a realistic budget keeping in mind the standard norms for down payment, typical slab payment milestones and any additional fees associated with the purchase. Being financially aware will help you understand if you need to secure a loan – almost entirely or partially.
This would be the right time to have conversations with banks and lending institutions about their terms and conditions. Exploring loan options from your own bank is a good idea since they will be more pre-disposed to explaining the procedure to you. Ask about interest rates, equated monthly instalments and loan tenures. Check out what the process will be for foreclosures or extensions. Then compare alternatives and negotiate for the best deal. Pre-approval for a loan will give you a clear view of your purchasing power which in turn will help you focus on properties that are best suited to your budget.
Financial considerations, however, go beyond the stage of initial purchase. Be prepared for the inevitable outlays – property taxes, insurance, maintenance costs, repairs and value-additions. At the back of your mind, do factor things that could be likely in the long-term such as renovations and refurbishing. This makes for a more accurate estimate of the overall cost of owning the home – and takes the guesswork and strain out of an otherwise extremely exciting experience.
As a last precaution, do go through the exercise of examining your future financial stability. For instance, when do you plan to retire? Have you kept aside enough for unforeseen exigencies? Are you well protected financially against fluctuations in the job market and stock market alike? Have you included impending education, marriage and other such cost heads that will crop up in the coming years? Once you decide to be a homeowner, you may need to shift your perspective on a few lifestyle choices and proceed with caution on a few others. Living a financially planned and responsible life will now assume a larger role. But then, once you take possession of the keys, you’re opening a door to a whole new experience.
The most important analysis, really, is of value for money. At Chaitanya Foundations we strive to maximise your money’s worth. Our customer testimonials read like narratives about our integrity.