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       Buying a home can be one of the biggest decisions in one’s life. It is a decision that will be with you for years to come. So make sure that you consider all the pros and cons before taking the crucial step. Here are five things you must keep in mind:

1. Can You afford it? The most important consideration before buying a home is not the availability of a loan but your ability to repay it. If you have just about started earning, you may want to wait a bit before putting a big chunk of your salary in paying EMIs. Besides EMIs, there is also the cost of decorating the house and maintaining it. If you are already repaying another loan, like an education loan or car loan, you may want to reduce your liabilities prior to taking on another one. You will also need to contribute at least 15% of the value of the property as the down payment.

2.    Location: Contemplate the pros and cons of your new home’s geographical situation. Is your prospective home close to all the amenities you desire, like public transport, schools or green spaces? Is the community mix the one you are looking for? Are the neighbours mainly single young professionals, middle aged families or retirees? How far is it from your workplace and how easy or difficult is it to commute from here?

3.    Resale Value: Unlike the earlier generation, this generation rarely lives in a home for a lifetime. In a few years’ time, you might want to upgrade and relocate. Hence, the resale value of the property you are about to purchase must be considered. What will be the growth in this locality as against the city as a whole? Certain builders have a reputation of building homes that last and the homes of these builders fetch more on resale by reputation alone.

4.    Clear Title: A property deal involves a large amount of money and you have to guard against frauds. To make sure it does not happen to you, ensure that the title of the property is clear. If the property is under construction, you can check with local authority if the plans are approved. For a second hand property, you have to verify if there are pending loans or liens against the property. Also, make sure that all the dues have been paid to the co-operative housing society, the utility companies and local authorities.

5.    Availability of Loan: Though loans are available fairly easily, banks have become more selective in giving home loans, more particularly because of the sub-prime crisis of 2007-2008. If you are looking to purchase a property that is more than 15 years old, you will have difficulty in getting a loan. It makes sense to have a pre-approved loan limit since it gives you a fair idea of your budgetary limits. It will also help you make an offer on a lucrative deal that you may lose if you procrastinate.

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