Owning a home is deemed to be a part of the Indian dream. Everyone aspires to own the home of their dream. There is a lot of aspiration and hard work going in when it comes to buying a property. All those years of labouring and sacrificing will bear fruit when you finally decide to take the plunge of buying your dream home. It is paramount to note that when you achieve your dream of owning a home in Pune, you must be happy and proud of your accomplishment, and you must not be loaded with debt worries. This blog excerpt will highlight the financial aspects to be considered before buying a home in Pune. This guide will be beneficial for the first time buyers. It is never too early to know the financial nitty-gritty of purchasing a home.
Accumulate Down Payment
Your dream of owning a home can quickly get vanished if you cannot afford to pay an adequate amount of money for your down payment. Down payment is the amount you have to pay upfront to the seller (developer). The minimum down payment for a home loan in India is set at 20%. As per the rules of RBI (Reserve Bank of India), banks and NBFCs can grant loan only up to 80% of the property value as loan. For instances, if the house you are planning to buy is valued at Rs 70,00000, then down payment would be Rs. 14,00000.
Get Your Financial Planning Done
Before taking the leap of faith, make sure to review your financial obligations including other loans, insurance amount, etc. You will get a true picture of your cash flow. Your budget will be the yardstick to measure your expenses. It will reveal whether you will be able to bear EMI and monthly expenses together or not. Besides this, you should also consider the hidden charges such as registration, stamp duty, society maintenance while finalizing your loan amount and budget.
Improve Your Credit Score
A good credit score is a key to your home buying process. The credit score plays a vital role in your home loan application. The more your credit score is, the higher will be chances to secure a home loan. Upon submitting your loan application, the lender will investigate your credit score. Your credit score will indicate your creditworthiness. The credit score will be one of the key parameters considered by the lenders to approve the loan. So, you are advised to check your credit score beforehand with any of the bureaus like CIBIL. If the score is not in good position, ensure to improve it with the help of a financial advisor.
Choose the Right Home Loan
You must conduct thorough market research right before applying for the home loan. It will help you secure the most suited financial option. With a number of home loan options available in the market, you have the opportunity negotiate with the bank for reducing your interest rates. But before choosing the home loan, make sure to keep a few parameters in mind viz, loan eligibility, applicable interest rates, loan processing fee, EMI amount and other expense.
Once you are ready to take the move forward, make sure to select the right location, trusted developers for your dream home. Make precise to know the vastu competency the house as well as it will affect the positive vibe in your future.