How to Save Money for Buying a House
Aug 26, 2019 Home Trading Steps
Buying a house is one of the most significant purchases for most of us, and the investment in the real estate needs a lot of careful planning and consideration of financial ability and standing. More than a financial investment, buying a home is also an emotional investment. And to make sure nothing goes wrong during and after the purchase, a potential homebuyer must take specific steps for the entire home buying go smoothly.
1. Know your Finances:
The banks and financial institutes give out home loans as much as 80 percent of the total value of the property. Gone are the days when home owners use to save all their lives to purchase the house by retirement. The remaining 20 percent needs to be paid by the home buyer from their pocket. As much as home loans have made it easier for the potential buyers to buy the property, it is advised that your monthly home loan EMI should not exceed 40 percent of your monthly salary. Knowing your finances will help you find the budget that will fit your financial position without hurting your daily expenses.
2. Start Saving:
Savings play a massive part in buying a house. The 20 percent of the amount, including stamp duty and registration charges, needs to be paid by the home buyer. Use your saving to make the down payment is a good idea and higher the savings, lower will be your home loan amount.
3. Check your Credit History:
Before approving the home loan, the banks and financial institutes look into your credit history to make sure that you make your credit payments on time. A good credit score is significant, and it can be achieved with making your payments on time. It is also advised that the potential homebuyer maintains its debt-income ratio.
4. Look for the Loan Options:
Almost all the banks and financial institutes provide the home loan now. Most of them keep coming with offers to make sure that they have more home loan borrowers. From different loan options to the loan tenure, there is a lot of option for the home buyer to choose from. Try contacting as many banks as you can and compare the options to find the best deal that suits both your requirement and loan amount.
5. Emergency Funds:
A financial emergency does not come knocking at the door. It is advised to save some money for the rainy days. Buying a property does not mean that it burdens you more than you can take. Saving money every month not only help in making sure you have surplus funds but also helps you in checking your expenditure.
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