Demystifying Home Loans: A Comprehensive Guide for First-Time Buyers

By: Homeloan0 comments

Introduction

Home loans come with several advantages for first home buyers. Here are some of the benefits for first home buyers:

  1. Tax Benefits on Interest Repayments of Home Loan
  2. A Tax Benefit on the Principal amount of the Loan
  3. Credit-Linked Scheme Under Pradhan Mantri Awas Yojana
  4. GST Rate Reduced from 12% to 8%
  5. Additional Interest Rebate for 20 Year Term Compared to 15 Years Term
  6. Various Factors Affecting the Loan Approval Process
  7. Best Track Record of HomeLoans4U
  8. Best House Loan with the Lowest Interest Rate

Plan the loan amount that you can afford as follows:

Getting your first home can be an thrilling and one-time experience. However, buying a home isn’t always easy. A lot of first-time home buyers fall into some common pitfalls. Some of which can be costly.

So, before you start searching for your dream home, here are some things to consider:

Do’s.

In order to qualify for pre-approval, you’ll need to know your credit score and your overall budget. In some cases, pre-approval may even prevent you from working with a real estate agent until you’ve been preapproved for a mortgage.

Finding the right agent

You don’t need to hire an experienced real estate agent to help you purchase your first home. A good agent will help you navigate the market and give you specific advice.

Investing in homeowners’ insurance

Homeowners insurance is typically one of the largest investments most people make in their life. Once you’ve found “the one,” it’s important to safeguard your home and future with a comprehensive homeowners’ plan.

Don’t…

Don’t overspend. Most first-time buyers are impulsive, and when you’re making such a large purchase, it’s easy to go overboard. According to experts, buyers should only close on homes that they can imagine themselves living in for at least five years.

Don’t be careless with your money. You don’t want to make large purchases before you’ve been approved for a mortgage. Many first-time buyers don’t budget for closing costs. Try to set aside between one and four per cent of the purchase price to cover these costs.

Conclusion

You may already have some cash saved up, but if you don’t, you may need to use a home loan to finance your dream home. A home loan not only helps you finance your home, but you’ll also benefit from tax breaks on your interest and principal payments.

If you are looking to purchase your first home, there are a lot of things that need to be taken into consideration. Follow the tips above and know what to do and what not to do to avoid some of the common issues that a first-time home buyer faces.

The most reliable brand in this sector, HomeLoans4U, offers the lowest home loans interest rate.

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