Loan Guide for First-Time Homebuyers: Dos and Don’ts

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Introduction

Home Loans come with several benefits for first-time home buyers. First-time home buyers can avail of additional tax benefits on interest repayments of the Home Loan and a tax benefit on the principal amount of the loan.

Houses purchased under the credit-linked scheme under Pradhan mantri awas yojana get a reduction in the GST rate from 12 % to 8 %. An additional interest rebate has been granted for a tenure of 20 years as compared to 15 years.

In addition to numerous benefits for first-time home buyers, several factors can influence the loan approval process. HomeLoans4U, with its excellent track record, gets you the house loan for the lowest interests.

So, how do first-time home buyers get a home loan? Here are a few tips that first-time home buyers can keep in mind before applying for a home loan.

  • Plan the loan amount you can afford
  • Accumulate funds for the down payment
  • Know the basics of loans and your eligibility
  • Apply for a pre-approved home loan
  • Choose the projects that are approved by the banks
  • Know the tax benefit

Buying your first home is a thrilling experience. However, buying a home is not a walk in the park. Many first-time buyers fall into common pitfalls, some of which can be expensive. So, before you start looking for your dream house, here are a few things to keep in mind:

Do’s.

To get pre-approved, you need to know what your credit score is and what your overall budget is. In fact, in some cases, you may not even be able to work with a realtor until you have been pre-approved for your mortgage.

Find a Real Estate Agent

While you don’t need to hire a real estate professional to help you buy your first home, a good real estate agent can be invaluable. A good real estate agent will guide you through the process and provide you with market insights and concrete advice.

Look for homeowners insurance

Homeownership insurance is one of the biggest investments most people will make in their lives. Once you find “the one,” it’s important to protect your home and your future with a thorough homeowners plan.

Don’t…

Don’t overspend. First-time buyers often act impulsively, and when you’re making such a big purchase, it’s easy to overspend. Experts suggest buyers only close on homes they can see themselves living in for a minimum of five years.

Don’t be careless with money. You don’t want to make big purchases before you’re approved for a mortgage, so try to avoid overspending. Many first-time buyers don’t budget for closing costs, so try to set aside between 1-4 per cent of your purchase price to cover those costs.

Keep these tips in mind and you’ll make sure you’ve done everything you can to ensure you’re in the right place when it’s time to sign the dotted line.

Conclusion

You need money to buy your dream home. You may already have some money saved up, but you may need to take out a home loan to bridge the gap. Not only does a home loan help you finance your dream home, but you also get tax breaks on interest and principal payments.

Buying your first home requires a lot of planning and preparation. Make sure you follow the above tips and what to do or not in order to avoid the common pitfalls that a first-time home buyer experiences. HomeLoans4U, trusted brand of this sector provides the lowest home loan interest rate

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