Buyers FAQ

1) How much can you afford?
It can be discouraging to find that your salary won't stretch as far as the home you want to own. However, sacrificing a huge part of your income just to pay the mortgage can very quickly make home ownership a burden rather than a point of pride. It's better to buy a modest home now and look at purchasing your "dream home" in a few years.


2) What is your debt-to-income ratio?
This is something that lenders take very seriously. Your overall debt should not be more than 40% of your income, and your housing should not cost more than about 35% of your income. What 35% of your income will buy depends on a lot of decisions you'll make in your home search. Most importantly, it will help you figure out what homes are within reach, so that you can focus on the homes that are a good fit for both you and your budget.


3) What do you want?
Some buyers have very a very specific vision for their home purchase, whereas others may go in with very open minds. In any case, you'll want to figure out what you need and what you want in your next home we can help.


4) Why should I buy, instead of rent?
  A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you’ll enjoy having something that’s all yours – a home where your own personal style will tell the world who you are.              


5) Should I use an agent? 
 Using an agent is a very good idea. All the details involved in home buying, particularly the financial ones, can be mind-boggling. We can guide you through the entire process and make the experience much easier. We are well-acquainted with all the important things you’ll want to know about any neighborhood you may be considering. We will help you search the right homes as per your criteria. With immediate access to homes as soon as they’re put on the market, we can save you hours of wasted driving-around time. When it’s time to make an offer on a home, then we can point out ways to structure your deal to save you money. We will guide you through the paperwork and answer last-minute questions if any when you sign the final papers at closing.

 

6) What are the tax benefits that are available if one avails of housing loan ?
Deduction of interest on housing loan:
In the case of self-occupied property acquired or constructed out of borrowed funds the deduction available for interest on capital borrowed is Rs. 1,50,000/-. In case of property, which is rented, the whole of the interest amount is allowed as deduction. The interest on borrowed funds in pre construction period is allowed over a 5-year period.