Looking to buy a home in 2021? 5 things to keep in mind

New Delhi: Owning our dream home has been a dream that we all of us had at some point in time in our lives. At the very outset, the purchase of a house or apartment needs the financial planning. And there are a lot of things that go into consideration while we are at gathering the required money to purchase a home. 

Here are five things to be mindful of before buying a house in 2021.

Home Loan eligibility

The loan that the Banks are going to sanction to you depends on how much your take home pay is. Your in-hand salary is a big parameter for banks to decide the quantum of loan. For example if your take home pay is Rs 30,000, it is unlikely that you will get a loan worth Rs 50 lakh. Do check with the bank first, on how much is your loan eligibility.

Down payment of your home

Although most of the banks now finance upto 90 percent of your home loan, but the remaining 10 percent of the finances have to be managed by you. So you will need to first access how much loan eligibility you have.

Do a background check of the apartment you have thought of purchasing like RERA registration

Before sealing the house deal, check whether the builder is registered with RERA (Real Estate Regulatory Authority) registered or not. Banks will lend you money, but a lot of background checking onus lies with you. RERA registration is one of the most primary filters to select a professional builder. If the builder is not RERA registered, you must not just move ahead.

Check your CIBIL score

For the ordinary middle class, buying a home is synonymous with getting a home loan. The middle class does not have the bandwidth to usually purchase a home without a loan. The Credit Information Bureau Limited or CIBIL issues you a three-digit number that is being calculated on the basis of your previous credit behaviour. CIBIL scores measure your creditworthiness and range between the lower range of 300 and upper range of 900. The closer you are to the upper range, the better are your chances of getting loan approval. 

Rate of interest of home loan

You must also check with your bank if they are offering you Fixed interest rates or Floating interest rates on the home loan. Each rate of interest have their own sets of advantages and disadvantages. You must weigh your options based on your condition. 

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