{"id":900,"date":"2021-07-23T08:12:07","date_gmt":"2021-07-23T08:12:07","guid":{"rendered":"https:\/\/www.homebazaar.com\/knowledge\/?p=900"},"modified":"2025-01-13T05:40:33","modified_gmt":"2025-01-13T05:40:33","slug":"10-important-things-you-should-know-before-buying-a-new-flat","status":"publish","type":"post","link":"https:\/\/www.homebazaar.com\/knowledge\/10-important-things-you-should-know-before-buying-a-new-flat\/","title":{"rendered":"10 Important Things You Should Know Before Buying A New Flat"},"content":{"rendered":"

Having accurate insights before buying a new flat is critical.\u00a0<\/span><\/p>\n

Because buying a new flat involves financial, legal, and other process complications that need a careful approach.\u00a0<\/span><\/p>\n

Therefore, knowing every single factor involved in buying a new flat gives you-<\/span><\/p>\n

    \n
  1. Streamlined Buying Process.<\/span><\/li>\n
  2. Right Financial Management.<\/span><\/li>\n
  3. Strong Legal Understandings and Backups.<\/span><\/li>\n
  4. Awareness Of Fraudulent Deals.<\/span><\/li>\n
  5. And You Get What\u2019s Best For You.\u00a0<\/span><\/li>\n<\/ol>\n

    So, here in this article, you will get in-depth new flat buying tips that you should know before buying a new flat. <\/span><\/p>\n

    Moreover, these 10 important points are framed as a series of questions for a better understanding of the complications involved in buying a new flat.\u00a0<\/span><\/p>\n

    Note:<\/b><\/p>\n

    Homebazaar<\/a> serves homebuyers searching for flats in India with end-to-end services like site visits, and lower-interest home loans to property registration guidance. We provide the best price options & offers for 1 to 4 BHK RERA-registered flats, villas & penthouse properties in India. To begin a smooth homebuying journey with us, fill out the form mentioned below or on the right side.<\/span><\/i><\/p>\n

    <\/b>1. What Is your Budget, Home Loan Eligibility, And Applicable EMIs:<\/b><\/h2>\n

    \"Buying<\/p>\n

    What would be an accurate budget is one of the most important things to know before buying a new flat.<\/p>\n

    Setting up the right budget comes down to two things- how much you can borrow from the bank and how well you will manage to repay. The challenge here is not to have an unbearable strain on your daily living budgets.\u00a0<\/span><\/p>\n

    So, To know what\u2019s the right budget, you can follow the simple thumb rule.\u00a0\u00a0<\/span><\/p>\n

    Your EMI on the home loan should not be more than 40% of your monthly income. Provided that you don’t have any outstanding debts.<\/span><\/p>\n

    This is important because most of the banks define the home loan eligibility on this criteria. Remember Banks approve loan amounts up to 80-90% of the total value of the property. This percentage depends on the Loan To Value Ratio. <\/span>Currently, The RBI has allowed banks to offer up to 90% LTV for property value of 30 and up to 80% LTV for property value between 30-75 Lakhs.\u00a0<\/span><\/p>\n

    Moreover, you need to make an advance payment which is 10 % of the total amount. And there are some other costs too that can shape your overall budget.\u00a0<\/span><\/p>\n

    So, the following considerations are crucial to set the right budget before buying a new home<\/span><\/p>\n

      \n
    1. Know your Home Loan Eligibility.\u00a0<\/span><\/li>\n
    2. Know the viability of your EMIs on the Home Loan.<\/span><\/li>\n<\/ol>\n

      Know Your Home Loan Eligibility:\u00a0<\/b><\/h3>\n

      Your net income and age are the two most important parameters that determine your home loan eligibility.<\/span><\/p>\n

      Generally, the bank sanctions the home loan as 40-50 times your monthly income. (Banks only consider the net salary\/in-hand salary component for calculating the home loan amount. other allowances are excluded)\u00a0<\/span><\/p>\n

      If you have a Monthly Net Salary of Rs 50,000 then the banks offer you a home loan of around Rs 2500000-3000000. This loan amount also varies depending on the bank and the loan tenure.\u00a0<\/span><\/p>\n

      The General Loan Eligibility Criteria of Home Loan Is:\u00a0<\/span><\/p>\n\n\n\n\n\t\n\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t
      Criteria<\/th>Requirements<\/th>\n<\/tr>\n<\/thead>\n
      Age\u00a0<\/td>21-65 Years<\/td>\n<\/tr>\n
      Income<\/td>Rs 10,000-25000\u00a0 (Min)<\/td>\n<\/tr>\n
      Ideal CIBIL Score<\/td>750<\/td>\n<\/tr>\n
      Employment Status<\/td>Salaried\/ Self Employed<\/td>\n<\/tr>\n
      Work Experience<\/td>2-3 Years<\/td>\n<\/tr>\n
      For Self Employed\u00a0<\/td>3-5\u00a0 Years Business Stability<\/td>\n<\/tr>\n
      Maximum EMIs<\/td>Up to 50-60% of the Monthly Income<\/td>\n<\/tr>\n
      Maximum Loan Tenure<\/td>30 Years<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

      Step By Step Home Loan Process:<\/b><\/h3>\n

      \"Buying<\/p>\n

        \n
      1. Submitting Home Loan Application In the\u00a0 Bank<\/span><\/li>\n
      2. Primary Discussion With Manager<\/span><\/li>\n
      3. Payment of The Process Fees (if applicable)<\/span><\/li>\n
      4. Document Verification<\/span><\/li>\n
      5. The Process of Approval<\/span><\/li>\n
      6. Property Documents Check\u00a0<\/span><\/li>\n
      7. On-site Estimations<\/span><\/li>\n
      8. Calculating the applicable Home Loan Amount<\/span><\/li>\n
      9. Agreement<\/span><\/li>\n
      10. Loan disbursement.\u00a0<\/span><\/li>\n<\/ol>\n

        Remember, the different banks have different eligibility criteria and the process for approving loans. So before proceeding it is recommended to know the detailed home loan application process for your bank.\u00a0<\/span><\/p>\n

        Know the sustainability of your EMIs on the Home Loan:<\/b><\/h3>\n

        Calculating the EMIs before buying allows you-<\/span><\/p>\n

          \n
        1. To set up the right budget to balance the financial demands.<\/span><\/li>\n
        2. You know how much to borrow from the bank.<\/span><\/li>\n
        3. You are better prepared for the repayments.<\/span><\/li>\n<\/ol>\n

          The best way to calculate the EMIs is through a Home Loan EMI Calculator.\u00a0<\/span><\/p>\n

          You need to specify three main components as Home Loan Amount, Interest Rate, and Loan Tenure. The HOme Loan calculator gives you breakups in the Loan EMI, Total Interest Payable, and Total Payment (Principal Amount plus the interest applicable).\u00a0\u00a0<\/span><\/p>\n

          Calculate the Home Loan EMI with easy home loan emi calculator<\/a> here.\u00a0<\/span><\/p>\n

          2. Which Locality is Best For You?<\/b><\/h2>\n

          \"Buying<\/p>\n

          The locality is important because it decides the total price of the property. To know what will be the right locality for you, consider the following points.\u00a0<\/span><\/p>\n