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The buyer’s guide for single women

The buyer’s guide for single women

As a single woman, you have the freedom to buy a property of your choice. This article sheds light on the process.

As more and more women become financially independent today, they decide to invest in property for their financial security. Buying your own home can be a daunting task, so let’s break down the broad steps for you:

* Select a good locality. As a single woman who may probably live alone, it is always wiser to look for a locality that is densely populated and family-friendly. It helps to have a police station close by, as also grocery shops, a shopping mall, hospital/clinic, open space for exercise, etc. Your safety is in your hands, and it is better to look for a house in a well-connected area with safe transport options even at night.

* Study your loan eligibility. Once you have decided the locality and started looking for houses, it is time to assess your finances and see how much loan you might need to borrow for the purchase. Before you decide on the price of the house you would like to buy, start by checking your loan eligibility. The eligibility decides the amount of money that the housing finance company will grant you as a loan. It is computed basis your age, income, number of working years left, credit history, etc. You can increase the eligibility by applying for the loan with your employed parent or sibling.

* Find the projected EMI payable. Now that you know your loan eligibility, it is time to crunch the numbers for your home loan. Most buyers use online home loan EMI calculator in India to find out how much EMI they must pay every month once the loan cycle begins. The home loan EMI calculator helps you recalibrate your finances and juggle your expenses so that you can manage both the EMI payment and other household expenses comfortably. The housing finance company will advise you against taking a very high EMI loan – normally, any EMI exceeding 50% of your monthly income is too high.

* Look for lower interest loans for women. The best way to beat the high EMI trap is to take a low interest loan. Some banks and financial institutions offer lower rate of interest to women applicants – normally, the loan interest would be 0.5% lower than that being offered to other applicants. You can also shop for the best loans during the festive season, when housing finance companies have several good home loan offers to choose from. These home loan offers could comprise a lower rate of interest, or low processing fees, or even the EMIs for the first few months waived off. But find out if there are any other riders you should be aware of, and how the interest calculation works out for floating rate of interest v/s fixed rate of interest.

* Do the paperwork carefully. The house sale is all about handling paperwork deftly – with the developer/buyer, during the registration process and finally with the housing finance company. Get the sale agreement vetted by a lawyer after you pay the booking amount. Once found satisfactory, you can pay the stamp duty and registration fees on the sale. Next, submit the registered sale agreement copy to the housing finance company for approval. After your loan application is approved, you must sign the loan agreement with the lender and take the disbursal cheque.

Buying a house is never easy, but we hope we’ve explained the process well enough to make it seem simpler!