4 Things to do now if you want to buy a house in 2020

4 Things to do now if you want to buy a house in 2020

Buying a house by yourself has always been the ultimate sign of financial independence and it still resembles their dreams for most Indian middle-aged

Buying a house by yourself has always been the ultimate sign of financial independence and it still resembles their dreams for most Indian middle-aged people. Though the only real concern is that buying a house is not as easy even when you have all your finances sorted to make you realize your dream.

This process is sure to test your patience and frustrate you numerous times. You may also end up questioning the whole idea when faced with challenges that are beyond your control like someone outbidding you for the same house, running into problems that you have never faced before in life.

So, while you can’t control or predict the circumstances you are going to face, but you can surely set your finances straight and take the following steps to make yourself potentially the best buyer someone would want to sell to ahead of others.

1. Be thorough with your Finances

For most people buying a house means loans and mortgages and the lenders would like to know if you can afford to pay back the loan. So, in trying to determine the same they’ll dig deep into your finances. They would like to know your income, your current gross debt and most importantly your credit score.

You need to understand your finances before anyone asks you to show them, so you need to take a broad look at where you stand right now. The 28/36 rule is a good place to start to determine whether you are eligible to get any type of credit. The 28/36 rule is a common rule that is followed by lenders across the globe in some respect. Though not a necessity, a good point to start.

2. Improve that Credit Score

You can’t change your credit history quickly, that’s a fact. So while making money quickly might help in some ways, there is no denying the fact that lenders would like to have a look at the whole of your credit history. So what you can do is improve your credit score so that you come off as an attractive candidate for the lenders.

A lot of what it takes to determine your credit score depends on your patterns and history of using the available credit, almost a third of your credit score is based on credit utilization. Banks see anything over 30% utilization of available credit as a risk. Improving your line of credit and credit score should be a top priority before going in to buy a house.

3. Get a pre-approval for your mortgage/loan proposal

Getting a pre-approval for your proposal shows the prospective lenders that you have done your homework. It is basically a quick document where a lender declares that after having a look at your finances they believe that you can get your proposal approved.

This might feel encouraging but this document isn’t binding because neither you nor the lender is making any commitments here. So, all that a pre-approval does is assure the seller that you are more or less going to get an approval for your loan/mortgage which may just prove to be the thing that a seller needs when multiple proposals are tabled.

4. Get your papers ready

Getting a mortgage or a loan approved means filling out application forms and having to sport numerous supporting documents. These documents generally include:-

  • Two paychecks covering at least one month of income (the most recent paychecks are best)
  • Two years of bank account records
  • Two years of your taxes
  • Documentation on any gifts from family members toward a down payment (to show that it’s not a loan)
  • Records of any other financial holdings
  • Proof of any alimony or child support payments (made or received)

A lender may ask for more documents as per requirements, but these are some that are common throughout the spectrum.


If done alone buying a house may seem like a lot of steps. Just look at the next step you have to take and not the mountain that needs to be scaled. Take it as it comes and all will be well.

We don’t promise a smooth road because there won’t be any but being proactive during the process will make you get to the solutions in time before getting frustrated.

BBG India provides you with comprehensive home loans and Mortgage solutions that will help you realize your dream of buying a house for yourself.