As home loan rates dip, is it the right time to buy your dream house?
As the pandemic hit the globe, the whole world faced its wrath physically, economically, and mentally. Due to this, there have been significant dips in home loan interest rates. Let’s find out whether it is the right time for you to buy your dream house or wait, shall we?
Owning a property is an exciting thought, but it isn’t accessible if you are new to the whole home buying and home loan application process. Sometimes, it even gets a lot stressful for people who have already bought their own house.
Things to keep in mind while planning to buy your dream house
- Home loan interest rates
- Documents for customer verification
- House size as per your preference
- Possession time
- Home insurance after you buy your house
- Other costs after buying the house include home renovations, GST, stamp duty, lawyers fee, maintenance as well as general upkeep of your newly purchased house.
These are the basic things that must be on your to-do list when planning to buy a house. Creating a checklist for the same will prove extremely helpful and will come in handy for the whole buying a house process.
How to plan the budget and finance when you are buying a house?
Your plan to buy a house depends on your budget. You can expect better property if you have a bigger budget. So, make sure you save before going ahead with the whole process of buying a house.
It would be best to start with your income, monthly expenditure, and how much you save per month. Also, the most crucial part of the whole process is your credit score, savings as well as other monthly expenses to find out if you are eligible for a home loan or not.
Is it the right time to buy a new house?
The right time to buy a new house is whenever you are ready. But as per today’s market, low home loan interest rates, working from home, and steady prices have made owning a property popular. The impact of low interest rates is more extensive than what you think. You can buy a little bigger space than what you would have bought initially. So, if you have enough savings and are eligible for a home loan, and the EMI cost is not more than one-third or a maximum of 40% of your monthly income, it is the right time for you to buy your dream house.
As we have mentioned before, the right time is whenever you are ready. You cannot buy a house if you don’t have enough savings or income to sustain the EMI cost for a long time. Another trick that may help you be eligible for a home loan is co-owning the property with your partner. It will speed up the process and make things easier for you. You can check whether you are eligible for a home loan and how much EMI cost you would have to pay each month by using a home loan calculator.