Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
Even at the initial stages of monetary advancement, the first goal established by most individuals is acquiring ownership of their ideal home. Simply put, a first-time home buyer is someone who is proceeding towards their first purchase in terms of residential real estate.
In contemplation of such a purchase, home buyers need to analyze and evaluate a number of things concerning the property such as the location, the cost, the proximity to certain sites, and much more. First time home buyers need to take many factors into consideration in order to make an informed decision.
Let us assess a few such factors:
• Financial footing: Evidently, the first factor to look at is one’s financial health. Before deciding to buy your first home, it is imperative that you do a sincere audit of your finances. A first-time home buyer must be thoroughly aware of his ongoing expenses and make sure these don’t interfere with the plans of his new purchase.
• Entwined expenses: If you are pondering purchasing a home for the first time, it is important that you comprehend the added expenses that come with such a purchase. Most people only look into the actual cost quoted by the seller and fail to evaluate the extra charges such as taxes and registration fees. The highest among these ends up being the stamp duty charges which usually depend on factors like the location of the property, the age, and gender of the owner, etc.
• Home loans and Government assistance: Most home buyers choose to make their purchases with the help of financial institutions that offer monetary loans specifically for this purpose. This is even more suitable for first-time home buyers. Now, it is common knowledge that these financial institutions typically charge high rates of interest on their loans. However, a first-time home buyer has the opportunity to approach certain schemes set up by the government which may considerably reduce their liability on such loans. One such scheme is the Pradhan Mantri Awas Yojana (PMAY) scheme. Accordingly, if you are eligible to avail of this scheme, you can obtain a reasonably subsidized rate of interest on the home loans borrowed by you for the purchase of your first home. All such schemes incontestably have certain factors that form the criteria which you must fulfill in order to benefit from the same.
Being a first-time homeowner is already a stressful experience without the added burden of hidden expenses. Hence, it is greatly recommended that you factor in all aspects of a potential purchase before making a decision.
