![]() It is always good to know the basics of loan terms and clauses from your friends or through online sources, before you speak to the lender.Ĭompare the EMI payable for different tenures with your monthly income. It is crucial to find the right lender and the right loan in the process of buying a home. If your savings allows, it is always better to make the maximum down payment possible, to reduce your monthly financial burden in the form of an EMI.įamiliarize yourself with available options So, the remaining 20% are expected to be shelled out of your pockets. So, even if you buy a small house now, in a year or two the prices will double, especially if you live in the city giving you the option of liquidating it and opting for a better residence.īanks will finance up to 80% of the property value. Real estate values are always on increasing trend, except for a few mid term hiccups. It is wise to restrict your monthly loan repayments to 40-45% of your monthly income. ![]() Loans can be good friends in the hour of need but an inconvenient burden, if not properly managed. Once you understand exactly what you can borrow, start looking out for a home like a shrewd shopper.Īim for a home you can really afford to pay. So, if you don’t fix your overspending before you buy a home, you will not be able to protect yourself from the cash flow problems which may affect you.Īlso, tracking your income and expense patterns will give a realistic picture of what you can afford to repay each month, considering your other living expenses. House ownership typically involves multiple costs like down payments, loan repayments, property taxes, insurance, maintenance, interior designing, stamp duty, etc. It helps you to identify and eliminate discretionary expenses. However, budgeting is a fabulous diagnostic instrument to analyse your income-expenditure patterns and thereby your true financial position. The idea of budgeting may be distasteful to those who have not tried it. And here, the key for planning is an honest financial self-appraisal with a budget planner. ![]() Planning is the most important step for buying your first home as in with any other purchase. A truck driver looks out at the construction site of a residential apartment building by property developer DLF Ltd.
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