Summary – If wish to buy a home and make your dream come true then planning is the key to it. Read more to plan!
There may be many people who must be planning to buy a home in 2018. Purchasing a house needs a certain amount of down payment to be paid from the buyer’s funds.
To find the ways to raise rest of the money apart from the down payment money, you can look for various options available for Home Loans in India.
Proper planning is the right key if you are planning to buy a house in 2018. Keep a check on below-mentioned points and get your finances in proper shape.
Pointers to Check to Get your Finance Planned
● Credit Score
The most important point that you need is to keep a check on your credit score. If you have not seen your credit score in the past year, you should take a look now.
You can check your credit score on various third-party websites, but make sure that all the loans, as well as accounts listed under your name, and belong to you. To maintain your credit score, you should have a good loan repayment and credit card bill payment history, so keep a tab on them.
● Make your Cash Reserve Strong
For buying a house, you will need some down payment for which you need to have a strong cash reserve. The loan process also involves various costs like closing cost, lender’s application fee, processing fee, and various other expenses, for which you need to have some cash at your disposal.
You can develop the habit of saving and can collect a good sum to invest in your home. You can deposit any monetary gifts or bonuses in your savings account to boost up your cash reserve.
● Stop Spending on Luxuries
Spending on luxuries can lower down your cash reserve, so stop it as early as possible. Luxuries never come at a nominal cost and are not necessary to have. They can be avoided, which will result in your cash reserve to go up and help save a big sum for your dream home.
● Go for Investment Policies.
Investing your money for some period in a profitable investment scheme can be a better idea to save money. There are various investment schemes available in the market; you can choose any of them as per your convenience and need. Investing your money in fixed deposits or mutual funds can outlay a sum that you can use for buying your home.
● Differentiate Between Wants and Needs
To develop the habit of saving, it is important to have control over your desires. You must understand the difference between your wants and your needs. If you want to save more, you should try to spend only on the necessities and control spendings over your desires and wants.
Usually, buying a home sees to be a difficult task, but if you invest and plan your money wisely, it’s no big deal. Once you have arranged the money for the down payment, you can then rely on the loan for rest of the amount.
Things to Keep in Mind Before Taking the Loan
You can take the Home Loan, but before that, you should keep few things in mind. Those are:
● Make an estimation and analyse how much funds you have and how much more you need.
● Estimate whether your income is enough to make the EMI payment of your Home Loan. Your EMI depends on the amount you have borrowed. You can take the help of various house loan calculator to estimate your EMI, foreclosure charges, eligibility score, etc.
● Do research first and get the idea of various housing finance options available in the market and choose the best Home Loan.
● Before taking any loan, get an idea about prevailing Home Loan interest rates in India.
● Make sure that all the necessary documents for the Home Loan are up to date and ready.
The Bottom Line
Buying a house is a dream, and for making that dream come true, you need to plan your finances well and take the decisions smartly!