Many people’s life goals include purchasing their ideal home. People start saving for their own homes at a very young age of our economic literacy. As we consider our homes, we consider several factors, including a great place, the property’s price, accessibility, the culture, and the available communal space.

Here is some fast advice for these first-home purchasers on the thing they should consider before purchasing a property.

When deciding whether to buy a property, you should strike the right balance between your savings and your debt.


The natural trend is to sell off holdings to cover most of the expenses. One maxim should always serve as your guide anytime you are embarking on a major capital commitment: “Never dilution all your savings.”

Investments in real estate have little liquidity. Please make sure you always have enough cash on hand to handle emergency emergencies.

So, you must have a good notion of the amount of credit you were eligible for before entering the loan system. In general, eligibility is determined by two factors: real estate values and salary.

  1. Income Qualification – The borrower will use your net income to determine your qualification which depends upon the monthly salary.
  2. Property Qualifying – Per Central Bank of India (RBI) guidelines, a loan should be capped at the homeowner’s market value. Loan to value is the term that’s used for the loan-to-market value ratio (LTV).

Nonetheless, the lender may choose to lower the LTV ratio underneath the RBI requirements if they so want, taking into account the dangers associated with a purchase. The lesser of the two things is taken into account for your ultimate eligibility.


The credit score, company profile, client age, building age, and various other significant considerations are among the many that are looked at while evaluating a loan. They are all important and could each be the deciding element in your financing.

Lenders won’t grant the loan if your reputation score is low and you have a prior default on your credit record. A credit rating of 700 or more is as having a clear. To find out more click here