Investing in real estate is more than just getting a secured place called ‘Home’. As per the study, investing in real estate has increasingly become popular over the past years. In fact, this has become a very common investment vehicle for the investors and the homebuyers. The real estate market has lots to do, like giving opportunities to make big gains. Real estate business as an investment is truly a big thing that can make an investor or homebuyer enjoy some huge gains. This time if you are thinking of buying a residential flat in South Kolkata then go ahead without any second thought. However, you need to consider several things when investing in a real estate property. Some of the essential things you need to remember are as follows:
#1. Build up Your Credit Score
John Ulzheimer, a nationally renowned credit expert and the honourable president of the Ulzheimer Group said – “It’s a brave, new world with respect to the credit requirements for mortgages.” There is one age-old rule that still applies, the higher your credit score is the lower will be your monthly payments. So, it is always advisable to smartly build up the credit score so that your monthly payment does not get affected.
#2. Figure Out How Much You Can Afford
There is a mantra for all investors and buyers – “Get a Home that is Financially Comfortable to you”! In fact, you can term it as a thumb rule. This will help every investor and homebuyer figure out approximately how much they can afford.
Make sure you make a rational debt-to-income ratio prior to buying a residential flat in South Kolkata. In a conventional home loan following a safe formula is always commendable. Whatever you do, you must not go beyond 28% of the gross monthly income you earn. This is an advice from Susan Tiffany, “the retired director of personal finance publications for adults for the Credit Union National Association”.
#3. Save Money For Your Closing Costs
Make sure you save enough money to make your down payments. Always remember that depending on your financing and credit, you will need to save money for your closing costs. This should be between 3% – 20% of your apartment’s price. It is important to save if you are planning to invest in buying a property.
#4. Have a Strong Savings Account
Saving money is very important for the closing and down payment. So, build your savings and have a strong savings account if you are planning to buy a residential flat in South Kolkata. In fact, building your savings must be done repeatedly to avoid being a defaulter. The money that you save will help cover the repair and maintenance issues the time when you own up your new home.
#5. Get Approved Rightly for a Mortgage
After you have decided how much you can afford for your home, it is the perfect time to shop for the mortgage. It is very important to make a smart decision when planning to take a home loan, because a bad mortgage can significantly affect your finances eventually.