It is a fulfilling feeling to own a home. Indian
homebuyers understand that a home is more than just brick and mortar. It is an
investment where the buyer not only invest financially, but also emotionally. If
you don't have a plan to save money for expenses, owning a house can be a very
stressful experience. If you want to purchase a home, it is important that
you have a plan and begin saving early. These are some tips for home
buying which will help you in the purchasing of
your dream house.
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Ø Improve
your credit score
You
must have a good credit ratings before you apply for a loan. Avoid making
large-scale purchases. It is also not a good idea to cancel credit cards
prior to applying for a loan. This could reduce your credit age. It would
be a smart option to reduce your credit limit.
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Ø Take
out an insurance plan
This is the major tips on buying a property. Financial
protection could be necessary to cover your loan in the event of an accident,
unemployment, or death. You can get protection against unexpected events,
such as non-payment of single income investments.
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Ø For
your loan, find a guarantor
You
may be able to seal the deal on your home loan by signing a guarantor
agreement. Although it is not mandatory that you have a guarantor to
secure a loan, this third party assurance will speed up the
process. Before you look for a guarantor to your home loan, be aware of
the risks. After a guarantor has signed for you, they will be responsible
for your loan payment and your eligibility for the loan. Most cases, the
guarantor will be a member of your immediate family.
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Ø GET A PROTECTION PLAN
It
is always a good idea to go for an insurance plan because of the unfortunate
events of unemployment, accident, or death. In the time of need you and your
family will need financial protection that could cover your loan. There are
short term and long term premium plans that provide protection from unexpected
events and you can choose those plans accordingly.
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Ø Save
up for your down payment
India allows a maximum of 80 percent loan. This means
that you must make a 20% down payment. It is a good idea to save early if
you are aiming to buy your dream home. Even 20% savings is substantial,
but it is not always possible. There are still other options to save money
on your home loan down payment. Read on to learn more.
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Your employer may offer you a loan
It is possible to borrow money from your employer for
your down payment. This is a simple process. Your employer will be able to
provide a loan for your down payment. This is because they are able to
guarantee your salary.
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Loan in gold
You could mortgage your gold to get a loan for your
down payment. A gold loan is one of many fast ways to get a down payment.
There are many private institutions that will pay for gold.
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Home down payment loans
Few institutions offer the home down payment loan as
an extension to the gold loan. The home down payment loan can be used
against gold at 11% interest over a 12--60 month time period.ÂÂ
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Ø Pick
the perfect EMI plan suitable for you
This is the most important thing to think about, when
applying for a home loan with a single income. Consider how much money you
can afford to pay each month for your home loan. To ensure your family's
smooth running, your home loan should be at least 40% of your monthly
income. Consider increasing your EMI to get a shorter loan term if you
have other income sources. Remember that the ideal term for a home loan is
between 15 and 20 years. You should be alert for changes in home loan policies,
fluctuations in interest rates, or any government reliefs.
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Conclusion
Home
ownership is often equated with achieving milestones in many cultures. Although
buying a home is a crucial decision. However, everyone believes that
buying a house is their greatest accomplishment regardless of age or financial
situation. Although millennials do things differently than previous
generations, they appear to be in agreement with previous generations regarding
home ownership. But millennial women are breaking down the glass ceiling
and owning their homes. This is a marked departure from the past generation,
where the majority of homeowners were men. Many millennials want to own a
home before they turn 30, which raises serious questions about the
affordability of buying a home with a single income.
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It doesn't matter if your home earns a single or double
income. This shouldn't bother you from buying a home. If one is educated
about what home would work best for them, there are homes for everyone.
Co-ownership is common in countries like India, where
marriage is considered a social institution. But, the landscape has
changed dramatically over the past few years, and single home ownership is now
on the rise. One income may not be enough to buy a home. A buyer
might not be married. The buyer may be confident about purchasing a home based
on their income. No matter what the reason, it can be daunting and
intimidating to buy a home with a single income. Even if this is your
first home, it's possible to own a home on a single income with some financial
planning. So, these were the how to buy a house tips.
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