Looking forward to buying your dream home but worried about the financial aspect of owning a home? Well, it is not uncommon for a single-income household to think about how to buy a home when they need to think about a lot of other things that are important to their family.
While buying a home is considered a big deal, don’t fret. While the older generation considers buying a home a big achievement, millennials nowadays are doing things differently. While previously most homeowners were males, nowadays, there are an equal number of male and female homeowners.
If you are interested in owning a home, we will advise you on how to own a home even with a single income. Here are some tips you need to keep in your mind!
Have a Strong Credit Profile
When applying for a home loan, it is important to have a strong credit profile. Before you apply for a home loan, avoid making costly purchases. Moreover, just before applying for the loan, cancelling your credit card is also not a good idea as it will shorten your credit age.
Find a Guarantor
When signing a deal on your home loan, having a guarantor may help. While it is not a necessity to have a guarantor, having one will help you process your loan faster. Before you find a guarantor, it is important to understand the risk involved. A guarantor is liable for loan repayment, in case you default on the loan. In a majority of cases, the guarantor is often an immediate family member.
Save Up For The Down payment
In India, you can finance up to 80% of the total home buying amount. It is always wise to start saving for your home early on as you need to make a 20% down payment toward your home. While you can save for the down payment, there are different ways you can manage.
- Gold Loan
One of the easiest ways to get access to funds is through a gold loan. There are many private financiers who are willing to offer you money against your gold.
- Loan from Employer
Did you know, you can take a loan from your employer to make the down payment? As they have the assurance of your salary, it is far easier to arrange for a down payment through this route.
Get Insurance Protection
When getting a home loan, you need to consider unforeseen circumstances. You don’t want to burden your family with the loan repayment in case of an accident or death of the primary loan applicant. You can choose to invest in a short or long-term insurance protection plan to protect your family.
Choose an EMI That Works For You
When applying for a home loan on a single income, you need to pick an EMI plan that suits your need. The home loan EMI should be around 40% of your monthly earning. The loan tenure can be anywhere between 15 to 20 years, so you can adjust your EMI accordingly.
Whether you are a first-time homebuyer with a single or double income, this should never be the deciding factor. There is a home out there that serves every income bracket. If you have educated yourself well enough, you can easily find a home that suits your needs.
Capital Globe assists you to buy or sell a property in Mohali, Kharar, New Chandigarh, Zirakpur, and Chandigarh. We believe in offering high-quality trustworthy real estate services. Customer satisfaction and gaining the trust of the customers are important for us.
For experienced, legitimate, and reliable real estate services, get in touch with us today!
Call 9804695046 or visit us at https://www.capitalglobe.in!!!
You can even leave your queries at info@capitalglobe.in.
