What to Do a Year Before Buying a Property
A year before buying a property, you should focus on establishing a solid budget, improving your credit score, researching the market, getting pre-approved for a mortgage, and gathering necessary documents like an encumbrance certificate, while also identifying your desired location and property type to start narrowing down options.
Key actions to take a year before buying a property:
Financial planning:
Create a detailed budget: Calculate your monthly expenses and determine how much you can comfortably afford for a down payment and monthly mortgage payments.
Save for a down payment: Start saving aggressively to build a substantial down payment.
Review your credit score: Check your credit report for any errors and work on improving your credit score to qualify for better loan terms.
Market research:
Explore potential neighborhoods: Research different areas based on your needs like schools, amenities, and commute time.
Understand market trends: Monitor local property values and market conditions to gauge potential price changes.
Mortgage pre-approval:
Get pre-qualified: Contact lenders to get a pre-qualification for a mortgage to understand your potential loan amount and interest rates.
Compare loan options: Shop around for the best mortgage rates and terms from different lenders.
Legal and document checks:
Obtain an encumbrance certificate: Verify that the property is free from any legal or financial liabilities.
Review property documents: Check the title deed, building approval plans, and occupancy certificate for legitimacy.
Professional advice:
Consult a real estate agent: Find a reputable real estate agent who can guide you through the buying process and help you find suitable properties.
Consider a financial advisor: Seek advice on managing your finances and optimizing your home buying strategy.
