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Converting your dream of buying a home into a reality requires much more dedication than one can imagine. At the end of it all, the entire process could leave you not just physically but also emotionally drained. However, there is nothing more fulfilling than living in your dream home - something that you always dreamt of. For this dream to come true, you need to be prepared for a host of financial, administrative, and legal procedures, and transactions. Read on to know the essential steps in the process:
1. Selecting & Finalising a Property
Research is the first step towards buying a home. Once you have done your background study and researched about enough properties, you'll need to narrow down a place that you wish to settle down in. Apart from evaluating the number of rooms or their sizes, you should also verify and ensure the safety and facilities available around your house. Things like proximity to stores, hospitals, schools, colleges, etc. should be on your checklist, especially if you intend to live there with your family. In case you are making an investment to be rented out, you may start out with buying a smaller place. A larger property, however tempting, will cost more and will require more work. However, you can expand your rental property once you learn the basics and start making enough profits from the first one.
2. Legal Due Diligence
Before you begin narrowing down on your choices, you have to make a selection of whether you wish to invest in a pre-existing property or a newly constructed one. Once you do that, do check to make sure that the owner of the property has the legal right to sell it to you; so that once it is sold, there is no confusion about the ownership rights.
With a pre-existing property, you are required to transact with the seller of the property, go over the terms and conditions carefully, verify documents, and then apply for a loan approval to buy the house. However, with an under-construction property, exercise more vigilance to confirm that the project is legal.
3. Applying for Loan
If you are looking for a loan to buy property, you must start the process of application with potential lenders, keeping in mind the down payment, the progress of the construction and the time taken to complete the project. Armed with this information, you get an idea about the size of loan you will be eligible for, and the terms you need to oblige to. Don’t delay the process of acquiring a loan as there are times when deals have fallen through due to insufficient funds. Once you have applied for a loan, be prepared with documents relating to income, tax and property related documents that the lender will need.
You also have the option of getting a loan pre-approved even before settling on a property. This will save your time eventually once you make a selection. Also, you need to agree on the payment method to disburse your loan. The best loan for you would ideally be tailored as per your payment fancies. Click here to get in touch with us and get your Home Loan tailored to suit your requirements.
4. Receiving the Allotment Letter
After booking a property that is under construction, you will be allotted a flat by the developer along with an allotment letter from the builder. The letter will have details like area, price, room number, parking charges, maintenance charges, club membership, extra charges, etc. You can even request a floor or view of your choice at the time of initial application; however, it might be a little difficult once you get your allotment letter.
5. Signing the Sale Agreement
It is essential for the seller to sign a sale agreement with you after you have agreed on the terms of the sale. In the case of a pre-existing property, you sign it after its purchase and in case of an under-construction property you get a sale agreement a few months after booking the apartment. This contract reiterates that the property has been sold to you, legally. Don’t forget to cross check everything on the agreement before signing.
6. Possession and Registration
The last and final step to follow while buying a house is getting the property registered in your name so you are its sole owner. The legal transfer of ownership will come into being once you have registered it in your name in the local municipal records where the seller will also document the transfer of property in your name. This will also include you to pay a stamp duty, a government tax for property transactions.
To conclude, buying a home is a huge step you are taking, so there is no harm in being extra cautious. If you liked what you read, do remember to check out other articles related to home buying and other journeys of your life.
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