4 Ways To Overcome First-Time Home-Buying Confusions
When planning to buy your first dream home, you would come across times and situation that would confuse. But that's alright! MakaanIQ helps you overcome some confusions that you might face if you are a first-time buyer:
Should you buy or rent
The first decision you need to make is that of buying your first home already or still live on rent. This decision can be made on the basis of your financial standing. If you have enough money to finance your purchase and your equated monthly instalments (EMIs) for the home loan, you could go ahead with your plan to buy a home.
Finance your home
Once you make a decision of buying your dream home, it's time to answer the question -- how to finance it? The first thing you need to know and calculate the loan amount you are eligible for and the EMI you will have to pay. Once this is decided, select between a fixed or a floating home loan (While in fixed the interest rate is fixed, in floating it can vary every time the bank changes the interest rate). The next thing is to see that there are not any hidden costs or clauses that might cause uncertainty. Also, keep a tab on any add-on charges or penalties.
The most common confusion for first time homebuyers are the legal documents involved in the process. In order to protect yourself from fraudulent practices and also, have proof of ownership, you must check the Sale Deed, Mother Deed, Approval plan of your building, Conversion Certificate, Encumbrance Certificate, Power of Attorney, Tax Receipts, Completion Certificate and Occupancy Certificate. In case the building is under construction, then you should ask for 7/12 Extract of the land, 8A (Chain of Ownership of Land till present Owner), Property Card copy, NOC from Municipal authority/Construction Clearance Papers to the Construction Plan and Building Map/Plan submitted to the authority. If opting for a ready-to-move-in construction, then along with above documents you should also have the occupation certificate.
Know your developer's authenticity
When planning to buy your dream home, a credible developer is a must. During the groundwork know about the authenticity of the developer and even the agent. For this, you could read the testimonials and even track consumer complaints filed against the developer, if any. For this, all you have to do is go online and check various real estate advisor sites. If you have a doubt on the credibility of the developer, check with the local police station or to the bank for the financial stability, to gather complaints against the developer. If your developer is a company, then you can go to the Ministry of Corporate Affairs website and clarify your doubts.