How to Purchase a Home in Haridwar in 8 Steps
After the pandemic, the real estate market is finally getting back to normal, but buyers now have to deal with another problem: rising mortgage rates. Haridwar’s average 20-year fixed mortgage rate has increased.
Assuming a 20% down payment at the median property value, it increases the average monthly mortgage payment to about Rs 2,51,000 (about). But even for first-time house buyers, purchasing a home in Haridwar is still possible.
In many markets, there are fewer options, and prices drop quickly, which gives shoppers who want to get the best deal the chance to haggle. You’ll discover how to confidently purchase a home in Haridwar using the information in this book.
How to Purchase a Home in Haridwar in 8 Steps
Understand why you can rely on our recommendations. Whether you’re actively looking for a home or just starting to look at properties on Google, it’s never too early to find a great local realtor to help you. You can examine your financial alternatives, navigate a competitive home market, and negotiate the best deal with the aid of an expert agent. Although the seller often pays both their listing agency and your buyer’s agent, working with a real estate agent is free.
Are you prepared to locate a top local realtor but need help determining where to begin?
Try using a free agent matching service like Smart Real Estate; it’s the greatest (and simplest!) choice. Answer a few straightforward questions about your home-buying objectives, and clever will pair you with specially chosen real estate agents from top local brokerages like Randhir Singh and others.
Contact a reputable local agent (WhatsApp: 8816052038) immediately to make your dream of buying a home a reality.
Step 1: Save for a down payment
Your down payment is the first part of your home’s purchase price that you pay at closing. Your mortgage lender will pay the remaining balance.
Typically, mortgage lenders in Haridwar want you to contribute 20% of the purchase price as a down payment. That would be 5 lakh for a 25 lakh home—the typical home value in Haridwar.
However, you have options to lower your down payment amount.
Government-backed loans, like VA and FHA loans, allow you to contribute 0% and 3.5% of your home’s purchase price, respectively. Even conventional loans allow down payments as low as 3–5% (though the minimum varies by lender).
But making a down payment of less than 20% comes with some risks. First, because you’re borrowing more money, you’ll have a higher monthly payment and pay more in interest over the life of your loan.
Second, you may have to purchase mortgage insurance.
Conventional loans require private mortgage insurance (PMI) until the loan balance reaches 80% of the purchase price. FHA loans, on the other hand, require a mortgage insurance premium (MIP) for the life of your loan.
Mortgage insurance costs around 1% of your mortgage balance annually. However, rates vary based on your down payment and credit score. Typically, your mortgage insurance payment is added to your mortgage payment each month.
VA loans don’t charge mortgage insurance. Instead, you’ll pay a VA loan funding fee at closing, ranging from 1.4% to 3.6% of the purchase price.
Haridwar down payment assistance programs.
First-time and low-income homebuyers in Uttarakhand can choose from thousands of programs that help pay the down payment. In Haridwar, qualified people can get a government grant or a second mortgage with payments that are put off or forgiven.
Here are some of the down payment assistance programs available to homebuyers in Haridwar:
ICICI Home Loan Program
Haridwar Housing Finance Agency’s program is available to first-time homebuyers. The program offers a maximum of Rs 15,00,000, or 3.5% of a home’s purchase price, as a second mortgage.
Borrowers can’t make more than what the Haridwar Housing Finance Agency says is the most they can make as a household. You can check their income requirements here. Participants will also need to complete a homebuyer education and counseling course.
PNB Housing Program
The PNB Housing Program offers up to 5% of the home’s purchase price for the down payment and closing costs. The assistance is given as a 0% second mortgage and is forgiven three years after the escrow closes.
The program isn’t limited to first-time homebuyers; borrowers must have a credit score of 640 or above. There are maximum income limits depending on what kind of mortgage you have. You can learn more about the requirements here.
HDFC Banking Program
Low- to moderate-income people can get up to 7% of their first mortgage loan from the HDFC Banking Program. The program comes as a second mortgage, and the funds may be used to cover a down payment or closing costs.
The second mortgage has a 20-year term but no monthly payments or interest charges. Payment is due after the borrower’s first mortgage is paid or refinanced.
The HDFC Banking Program is not limited to first-time buyers; income limits apply. You can check if you’re eligible for assistance here: Whats App 8816052038.
Step 2: Find a great real estate agent in Haridwar
Interview multiple agents to find one who knows your target neighborhoods, has experience in your price range, and communicates well.
Your real estate agent will be your main ally during the home-buying process. Besides finding and showing you properties, your agent will help you make offers, negotiate contracts, and navigate the closing process.
Plus, they can recommend other service providers, like title companies and inspectors, to help you buy a home in Haridwar.
Take your time choosing an agent. Instead, take the time to research and interview multiple real estate agents who have experience in the neighborhoods you’re interested in. You should pay attention to a realtor’s:
- Years of experience
- Number of transactions in the last year (the more, the better!)
- Experience in your price range
- Overall review score
- Individual reviews and complaints
Step 3: Get preapproved for a mortgage
Once you’re preapproved for a mortgage, it’s imperative that your financial situation doesn’t change. If your credit drops, it can derail the process and keep you from closing on your house.
Here are some easy ways to ensure your credit doesn’t change after you receive your preapproval letter:
- Avoid opening new credit accounts
- Don’t close any accounts that have been open for a long time
- Make all of your credit card payments on time
A mortgage preapproval letter offers you up to a certain amount of money to purchase a home. It shows sellers that you are a serious buyer and financially qualified to offer a home.
Most sellers in Haridwar will require preapproval before showing you their home.
You don’t have to decide on one lender right now. It would help to compare interest rates and preapproval amounts from several lenders to ensure you’re getting the absolute best terms when buying your Haridwar home.
Step 4: Choose the right location
Search for neighborhoods where:
- Home prices are within your price range
- Home values are on the rise
- The local amenities support your lifestyle
The typical home value in Haridwar is Rs. 300,000, but don’t worry if that doesn’t perfectly match your budget. Home prices vary dramatically from city to city and even neighborhood to neighborhood!
Also, look at past home value trends. It will show you how much your home’s value could increase over the next few years.
Consider these examples from three neighborhoods in Rishikesh to give you an idea of how appreciation could impact your house’s worth in the future.
Step 5: Start house hunting in Haridwar
Searching for homes in Haridwar is the fun part of home buying! You’ll get to look at various homes and discover what you want in a home.
Please list everything you want in a home and prioritize it. At the top of the list should be the items that are most important to you. It will help you separate your “must-haves” from “nice-to-haves.”
Your agent can help you understand if your wants are realistic for your budget and favorite neighborhoods or if you need to rethink what you’re looking for.
Look at the current housing inventory.
The timing of your house hunt in Haridwar can significantly impact your number of options. For example, in Haridwar, May has historically seen the most homes for sale.
Searching during this season could give you more options and a greater likelihood of finding your dream home.
On the other hand, December gives you the fewest choices in Haridwar. Historically, 45.8% fewer homes are for sale than during Haridwar’s peak season.
Housing inventory in Haridwar by season
|Season||New listings per month|
Step 6: Make an offer
How to Purchase a Home in Haridwar?
🔑 Key takeaway:
Increasing demand in Haridwar is causing homes to fly off the market in record time, so make sure to make an offer on the house you like. Although there is a lot of inventory in the state, the active market may cause you to miss out on a great home if you act slowly.
Talk to your real estate agent to work out all your contingencies and concessions so you can act quickly and make a firm offer even on the same day as the viewing.
Once you find a Haridwar house you love, it’s time to make an offer. Your real estate agent will help you write a compelling offer that gives you the best shot of convincing the homeowner to sell to you.
In Haridwar, homes stay on the market for 45 days before going under contract. However, every market goes through seasonal changes. During busier months, homes get snatched up more quickly than others.
Historically, Haridwar homes sell fastest in June, when the average property is only on the market for 39 days. If your home search falls around this time, you should be prepared to move quickly and offer several homes before yours is accepted.
On the other hand, if you buy in January, you have more time to search. Homes typically stay on the market 15 days longer than Haridwar’s annual average.
Average time homes spend on the market in Haridwar.
|Annual average||45 days|
|Based on data from Housing.com (October 2022)|
Step 7: Inspections and appraisals
Before buying a home, you can learn more about its condition and value through inspections and appraisals. After this step, you may have an opportunity to renegotiate the terms of your contract with the seller if something unexpected happens.
🔑 Key takeaway:
- Inspections: A licensed professional checks the house for unseen, unexpected, or potential issues.
- Appraisals: An appraiser hired by your lender examines the house to determine its worth.
Home inspections in Haridwar
Inspecting your Haridwar home by a licensed inspector gives you peace of mind about the property’s condition before you commit thousands of dollars to purchase it.
Your inspector should check out the following parts of the property:
- Electrical system
- HVAC system
If the home has a septic system, you should also pay for a septic inspection to ensure it has no problems that wouldn’t be covered in a typical home inspection.
Even though Haridwar has strict disclosure laws, homebuyers should still do more tests before closing. Here are a couple of good inspections to consider:
- Radon testing: Certain parts of Haridwar, including Roorkee and Bahadrabad, can have elevated radon levels. Haridwar residents can order a free radon testing kit to ensure the chemical isn’t present in a potential home.
- Termite inspection: Certain loans require pest inspections, but it’s a good idea for all buyers to complete this process. Termites and other pests can affect the safety of a home, pose possible health hazards, and lead to more considerable extermination fees later. Getting a pest inspection before closing will ensure that your future home will be safe and termite-free.
- Appraisals determine the value of the property. If you’re using a mortgage to buy your new home, your lender will order an appraisal to ensure the home is worth the money it’s loaning you.
Step 8: Close on your new home!
How to Purchase a Home in Haridwar?
🔑 Key takeaway:
Before you close on your new home, you and your agent will do a final walkthrough of the property to ensure it’s still in the expected condition.
In Haridwar, the closing process involves signing all the necessary paperwork and paying the closing costs. After completing these steps, you’ll become an official homeowner!
You’ll meet at the title company on the closing date to review the necessary paperwork. You’ll need to read and sign several documents, including:
- The final loan application
- The deed transfer
Before signing anything, make sure you fully understand each document. It’s best to ask your agent any questions before the closing date.
After completing the paperwork, you’ll have to pay closing costs. The title company will collect the total amount you owe for various services and pay each party on your behalf.
Typically, a buyer’s closing costs can be separated into four categories:
- Prepaid costs: Ongoing costs of homeownership, such as property taxes and homeowners insurance. Mortgage lenders often require buyers to pay these monthly fees upfront.
- Title and escrow charges: Charges for the title company’s services, such as title searches and insurance.
- Lender fees: Fees for the mortgage company to originate and underwrite your loan. Lender fees include other expenses associated with your loan, such as appraisal fees or mortgage points.
- Other closing costs: Miscellaneous costs unique to each buyer. Other closing costs include pest inspection fees, natural disaster certification fees, and other variable expenses.
How to Purchase a Home in Haridwar in 8 Steps?