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When you’re planning to buy a new house, the joy may just overflow in your family. But, honestly speaking, you have to navigate many steps along the journey of homeownership. Here’s when a checklist can streamline the homebuying process. So, this article will lead you through the essential steps as you consider buying a new house a significant milestone.
As you embark on a journey of seeking a new residence, it all starts with planning. You also have to follow some steps as stated below.
Figuring out the budget is the most important thing in the home buying process. But, first and foremost, you have to evaluate your financial situation. While you’re doing so, you must consider the monthly expenses and how much you want to save regularly. Once you have set a realistic budget, you can then look for houses. Moreover, you need to check the credit score and remember to save more in your bank account. This may perhaps eliminate the need for taking a loan.
Seeking approval for a mortgage is the next step to consider. This step involves evaluating the creditworthiness and confirming how much loan can be sanctioned. Apart from being clear about the purchasing power, an approval also shows that the seller can afford buying the house. But, you may have to seek assistance for the pre-approval process. After all, such an approval is similar to approving a shopping list.
When you wish to lead a particular lifestyle, the location of the house plays a vital role. So, when you’re searching for a new house, make sure you’re aware of the surrounding region. At that point in time, you have to check whether the basic amenities are closer to the house. Besides, it shouldn’t be tough to commute to the workplace if you’re a working professional. If you’re raising children, then schools must also be present in the vicinity. Above all, you must be sure about future developments because that can affect the property’s value.
As the homebuying process moves ahead, you have to gather many legal documents. Let’s check the documents one after the other.
The Sales Deed
This is a legal document that shows that the seller has sold the property to the buyer. The document also shows that ownership has been transferred from the seller to the buyer. Besides the details of the seller and the buyer, the document presents every detail of the property, along with the buyer’s rights.
The Mother Deed
Among the numerous documents, the Mother Deed is considered to be the most important. Such a document presents the history of the property’s ownership. Many banks need this document once a buyer wishes to take a loan. In addition, an individual must get in touch with the local authorities for drafting the document.
The Sale & Purchase Agreement
Such a type of document is drafted only when the terms and conditions are mutually agreed upon by the seller and the buyer. For instance, once the seller and buyer settle on the flat’s price, then the details are included in the agreement. Certain sections in the agreement will clearly state the agreed amount.
The Building Approval Plan
Before the construction phase, the builder has to ensure that he seeks approvals from the authority. He should comply with the terms of the building plan before everything is finalized. Hence, before you close the deal, make sure you gather these documents pertaining to the purchase.
The Possession Letter
This letter is yet another document to consider before purchasing the house. As the builder issues the letter, it states the date when the buyer can start living in the house. However, it’s important to note that a possession letter is not equivalent to a proof of ownership.
The Completion Certificate
Known to be the occupancy certificate, this document states that the building has undergone inspection post completion. On the other hand, the certificate also confirms that the builder has followed the laws of the Municipal Corporation. So, once you’re about to reside in a house, you have to obtain this document to avail basic utilities. These can include electricity supply, drainage, and water supply. But, if you don’t have the completion certificate, then you have to bear a penalty in the future.
The Khata Certificate
A Khata certificate is nothing but a document that the municipal corporation issues in different cities of India. If you go through this document, then you will clearly know more about the property and its owner. The Certificate also states more about the property’s size, layout, and other important information. Primarily, individuals refer to this document while assessing property tax.
The Allotment Letter
When you’re planning to buy a house that is in the construction phase, then you will need an allotment letter. Such a document will have all the details related to the payment and any additional fees you may have to bear. At times, you may have to pay additional fees to avail certain facilities. Additionally, it’s important to present this letter when you’re trying to take a loan from a bank.
At this juncture of the homebuying process, you have to connect with someone who inspects houses. While inspecting the house, he will ensure structural integrity and confirm whether the property’s condition is good. This step can later mitigate the occurrence of bearing the expenses of repairs in the future. Beyond this, you also have to make sure the property is sold at the right price. An appraisal can offer an evaluation of the property’s value and prevent you from paying more.
In the end, you must sign the legal documents and take ownership after fund transfer. However, for a smooth closing process, you may have to work with an attorney or a real estate agent. You also have to bear the closing costs like fees and taxes till the time you get the keys.
In conclusion, we would like to say that it can be quite exciting to buy a new house. But, when you’re moving ahead, you can find your way through this new homebuyer guide. Everything that we have stated under this checklist will surely make the home buying experience successful.
Check out the projects by Goodbrick Realty if you are still dreaming about leading a lavish lifestyle years ahead.
