Are you about to finalize your dream home? Yes, but the amount of down payment is making you anxious. As you have little less than the required token money. Relax, because this is a common problem that most of the aspiring landlords face. The down payment is crucial for securing a residential property of your choice. As the seller initiates deal with the person who has the down payment ready.
But, the insufficient funds for making down payment bring every home buyer on the same page. Thus, it is important to know simple tricks that prove beneficial when it comes to finalizing a home buying deal.
What Makes You Manage the Down Payment?
According to the norms of Reserve Bank of India, no bank can sanction 100 percent of your home loan amount. The banks finance 80 and 90 percent of the home loan depending upon your case. Thus, you need to manage funding for making the down payment. This management of down payment can make or break your aspiration of being a homeowner.
So, take some time out and take a look at the below-mentioned points.
Tips to Secure Down Payment Amount:
1. Calculate Your Savings
Remember, no one takes the decision of purchasing property overnight. Rather, it includes proper planning. This planning helps you save more and also makes your down payment amount sufficient. So, keep a track of savings on the monthly basis. This allows you to know the extra expenses incurred for the particular period. Thus, you will act smartly from next time and won’t spend even a single penny if it’s not worth doing it. This monthly saving turns to be a big amount at the time of buying property. So, start saving today as it will help you to finalize the dream home when you wish to.
2. Apply for Personal Loan
A personal loan is an all-purpose financial support in life. Thus, you can get it sanctioned for paying the required down payment amount. This loan option is the best to secure your financial condition at the time of home buying. As it also helps you keep emergency funds ready to use while completing the home buying process. We suggest you make wise use of this remaining amount by not spending it right away. The shifting into a new home will have other activities attached to it such as furniture buying, remodeling of kitchen etc. So, use the remaining personal loan amount to furnish these things and lower the burden of paying back after owning a property.
3. Invest in SIP – Simple Investment Plan
Today many financing companies offer these plans. Interestingly, you can start the Simple Investment Plans from making the minimum monthly saving of rupees 500. Each SIP plan is different from other. So, check out the plan that suits your budget and maturity period before investing. Usually, these plans incur a small amount of saving for a particular period and fill your pocket with a hefty amount at the time of maturity. This is the third best way to manage funds for making down payment.
4. Opt for Pre-Approved Home Loan
This type of home loan has been a great help. Apply for the pre-approved home loan and get your amount disbursed at the time of making down payment. Obviously, you can payback this loan as soon as your actual home loan amount gets sanctioned. Positioned at four this is an amazing way to book your home with easy down payment activity.
Keep these points handy and plan your home buying process accordingly. It will help you stay happy, debt-free and at peace after moving into your happy home.