July 26, 2009

Buying a home?

Found an excellent article entitled, 'Buying a home? 6 vital steps to follow', by Pankaj Anup Toppo., and which was originally posted in Outlook India (Money). The article starts starts:

"When the real estate sector was on a dream run from 2002-03 till around January 2008, home buyers in most cases overlooked many issues that are coming to the fore now. Avoiding some common mistakes can make the process of selecting and buying a house a little simpler.

Before you buy. Most mistakes happen at this stage.

Home search. A typical home search starts with scanning advertisements. But, this means you will have to check everything on your own - the developer's credentials, his ability to deliver on time and the approved building plan. Not easy to do. Developers aren't usually forthcoming with this information. Even if they are, analysing it is tough, especially if you are a first-time buyer.

If you find a house on your own and at a price that suits you, getting a loan from a bank or a housing finance company isn't easy. The institution will do its own due diligence before approving the loan, which means you will have to wait for some more time. And, if the lender finds a problem with the project, it may not sanction the loan.

A simpler way is to approach the bank or the HFC from where you plan to take the home loan. Most of them have a list of pre-approved properties. They include properties on which the necessary checks have been done. If you choose from this list, loan approval will be faster. The only hitch is that these properties will typically cost a little more."

The article goes on to discuss; payment mode, developer agreement, property dealers, choosing the Bank and facts to consider after the purchase.

To read the article in its entirety, please go to this link here.

No comments: