Game Plan

I love reading. I love surfing the internet. I love reading on the internet.

I have been reading a lot on how to plan ahead for buying a house. After a lot of reading these are the things that I think are essential components of a game plan for buying a house.

1. Keep your bank statements in perfect order. No bounced checks, no unplanned over drafts, no fines for minimum balance not met etc.
2. Pay your taxes on time and have the ITRs in place. Banks usually check for last three years of ITRs but I am planning to have spotless ITRs for five years when I make my application.
3. Have a stable professional life. Dont switch jobs every year. Banks make reference checks so it is important that you are stable in your job.
4. Don't have other financial burdens. A car can wait if a house is really what you want. Don't have too many financial commitments when planning for a home loan since it will take up major part of your salary every month. You want to be able to buy food at the end of the day.
5. Pre Approval of a loan. Banks allow a window period of six months for you to finalize a property after the loan is approved. Pre approval is a self assurity that you have the necessary funding. When you get a good deal you will not have to waste a lot of time to get the loan which will ensure you don't miss the deal.

One very important thing. India has just started catching up on the concept of credit score. Be a good customer. Pay your utility bills on time. After 2-3 years it will become very important for individuals to have a good credit score to be able to qualify for a home loan at favourable interest rates. So, start now and start smart. Pay your bills on time. Do not get in credit card debt. It is the worst kind of debt with outrageous interest rates and is almost like a vicious cycle.

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