Buying a home will probably be one of the most significant decisions of your life. So you must take the decision wisely. Asking yourself the right questions will help you determine whether it is the right time to buy a home or not. To help eliminate your doubts, here are 7 questions to help you weigh all the factors in your home-buying journey.
#1 Do I have the budget?
Finances are crucial in making your dream of owning a home come true. So, figure out your budget first. Your budget will determine the type of home you can afford – like 1 BHK, 2 BHK or 3 BHK – or the kind of locality you could live in. For example, the budget for buying an apartment in Electronic City will differ from buying the same flat in another locality. If your budget is not at par with the type of home you want to buy, maybe it is not the right time.
#2 Do I have enough savings in my emergency fund?
Emergency funds are essential. Always remember that buying a home takes some time to materialise. There are many processes like registry, possession of the property, due diligence, loan, etc., which can sometimes delay the process a little. Moreover, the legal paperwork, home interior, home maintenance etc., involve extra costs. It will help if you have additional funds handy.
#3 Do I have all the monthly expenses mapped out?
You must map your family expenses to see if they align with your home investment budget. It will give you a broad outline of your current and future financial status and a safety net to sustain your family in case anything goes south.
#4 Do I have a good credit score?
Having a good credit score is essential for home loans. It is recommended to check your credit score before you plan on buying a home because lower home loan rates can save a lot of money in the long run.
#5 Do I have a stable income source?
You need to ensure that you don’t earn through an unstable source. You should have at least one stable income source which provides enough money to sustain your home payments.
#6 Do I have control over my existing debt?
Be honest to yourself when buying a home. Having existing debts or EMIs can pose future problems due to recurring expenses. But if your budget comfortably accommodates all existing debts, along with your new home’s down payment, you can go ahead.
#7 Am I going to stay in the same city that I live in or shift to another?
Buying a home is only correct if you stay and work where you plan on buying it. If you wish to buy an apartment for sale in Electronic City, Bangalore, but you may have to live in a neighbouring city for work, then maybe it is not the best option to buy a home. Buy a home if you are sure you will live in the same city for a long time (at least 5 years).
Buying a home is a big move. So, thoroughly consider every aspect of your life, such as finances, lifestyle, job situation, and long-term goals, before buying a home.