We all love to have our own sweet home, but for most of the property, buyers face a similar issue in arriving at a fair value of the property. The most important question that comes to one’s mind is am I paying fair price for home loan or paying more than the actual market price of the property? The answer to this question is very essential to avoid overpaying & ensuring a fair deal and thereafter, committing to spend hundreds of thousands of dollars or even millions through home loans.
With a little research and some easy tips, you can easily navigate the real estate market and make well-informed decisions. Keep reading to know more about paying a low interest home loan?
Importance of paying a fair price for home loan
Paying the right value for a home is necessary for many reasons, the most important one is an overvalued property will lead to the requirement of a larger amount of loan, and thus, higher monthly repayments. Not availing a low interest home loan would strain your monthly budget and things may get worse if the interest rates rise in future. On the other hand, if the bank valuation of the property comes to lower than your actual purchase value, you may face a shortfall of funding, thus, complicating the processes further.
Now, the question arises as to how to access the fair value of the property you are buying and find the best low interest home loan vendor. Let us go through some of the factors that can impact the market value of the property.
Factors influencing the market value
To determine if a home’s asking value is fair, you may consider various factors that can influence its market value.
Some of the important factors include following:
- Exact Size of the plot where the home is situated
- Location of the property
- Condition of the home whether it is new or old construction
- Number of rooms that include bathrooms and bedrooms
- Availability of parking with an added advantage if there is availability of off-street parking
- Orientation of the home especially with respect to the availability of sunlight during daytime
- Energy efficient home as most of the buyers like eco-features like the availability of solar panels on roof to save on hefty electricity bills
- Availability of best views and outlook
- Any planned developments in the selected area in future
You may research the recent deals of similar properties in the area to get better insights into the fair market value of the property you are purchasing and other low interest home loan options.
Negotiation is Important- Don’t be afraid!
After you have done all your necessary homework to get a reasonable idea of the price, you can use negotiation as an important tool, if you believe the property price is overvalued as per prevalent market conditions. However, you must be swift in making decisions during the negotiation so as to avoid losing the property to another probable buyer. In addition to the above, you may also get in touch with certain financial institutions to obtain pre-approval for the home loan, which may add advantage and allow you to shift quickly to a new property as soon as the deal is done
We are a Call Away !
Don’t hesitate to reach out to us to discuss the pros of home loan pre-approval, a crucial step to help you negotiate with confidence with the seller. Surely, it can streamline your home buying. We are just a call away!
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
