• Apply now

Money in bank in 24 hours

Apply now

Buying a home made easy - 6 tips for a smooth purchase

  • Highlights

  • Get your finances in order to improve your CIBIL score

  • Approach financial institutions that meet your needs

  • Understand the different rates of interest

  • Calculate your tentative EMI

Investing in a new home is one of the most important decisions you’ll make. The first two questions that come to your mind could be ‘How do I actually afford it?’ and ‘How will I manage to buy a home?’ Fortunately, getting a home loan is quite an easy process. You just need to be aware of the technicalities and be sure of what you’re looking for .

Here are a few tips for buying a home and making sure your investment is worth every rupee.

Improve Your CIBIL Score

CIBIL score is a calculation of how safe you are as a borrower. It’s fairly simple to maintain a good credit score. Pay your bills on time, don’t max out your credit cards, and clear off any outstanding debts. If you have your finances in order, your credit score will give the lender a good idea of how you’ll handle your home loan.

Shortlist Your Options

This applies to two things: your house and your home loan. Don’t mindlessly go through countless property brochures and home loan offers. Pick your best options and approach only those builders and financial institutions that meet your needs.

Additional Read: Applying for a Home Loan? Tackle these 6 Problems

Buy What You Can Afford

Just because you’re opting for a home loan, that doesn’t mean you can actually buy the costliest house on your list. You still have to put in money for a down payment and you still need to clear out EMIs every month. Use Home loan EMI Calculator for desired loan amount and see if it fits within your monthly budget.

Get Pre-Approval

Pre-approval lets you book a home even before your loan amount is sanctioned. If you have a good enough credit score, the bank can deem you eligible for a set amount of money. This pre-approval is valid for a good enough time period, usually around 6 months. If you get this done before you even start searching for a home, you can peacefully go about the process of booking your home and getting the loan sanctioned without any issues.

Pick the Right Interest Rates

This is a crucial step for any home loan seeker: deciding which home loan rate of interest to choose. Both fixed and floating rates have their own pros and cons. Essentially, a fixed rate of interest will make all your EMIs equal and a floating rate will have different EMIs each month. With fixed rate you might get more security and fewer saving. A floating rate may prove to be relatively less secure when it comes to your finances, but may lead to more savings in the long run.

Additional Read: Your Guide to Getting a Better Home Loan Interest Rate

Tips to Improve Home Loan Eligibility

There Is No Right Time

Don’t depend on the market statistics and wait for the property prices to fall. Conversely, rushing to buy a house just because the rates have come down for a small period isn’t a good idea either. Keep in mind that property prices don’t fluctuate too much. If you’ve found a good enough house, evaluate your financial condition to check if you can afford it.

If you’re a first-time home-buyer, you can go through this handy guide to make home-buying easy.

Check your cibil score for free

The information, products, and services included in or available on bajajfinserv.in may include inaccuracies or typographical errors. Changes are periodically added to the information herein. bajajfinserv.in and/or its respective suppliers / affiliates may make improvements and/or changes on the bajajfinserv.in website at any time.
The material contained in this site and on associated web pages is general information and it is not intended to be advice on any particular matter. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. The decision with respect to any financial product or opportunity or nature or suitability or choice or the viability of any product or service shall always be sole responsibility and decision of the subscriber and user.

How would you rate this article

 Please let us know why?

What did you dislike?

What did you dislike?

What did you like?

What did you like?

What did you like?

Next up


How to get your home loan quicker with Bajaj Finserv

Subscribe Now

Subscribe Now

Subscribe to our monthly newsletter and get the latest updates

Thank you for subscribing