Purchasing a home is a dream that everyone has. However, it can only be completed by those that strive diligently for it.
The majority of people nowadays intend to purchase a home before they reach the age of 30. It has become a goal not only for men but also for women who want to shatter preconceptions by purchasing a home.
Today, we’ll go through some of the ways that you can buy a house on a single salary.
Work on your Credit Profile
You must have a strong credit profile when applying for a house loan. Before applying for a loan, avoid making large expenditures (>Rs. 65000). Simultaneously, canceling credit cards before applying for a loan could result in your credit age being shortened. It would be a prudent decision to reduce your credit limit.
Invest in a protection strategy.
You and your family will require financial protection in the event of unemployment, accident, or death, which could cover your loan. Short and long-term premium plans are available to safeguard single-income investments from unforeseen occurrences that could result in non-payment.
For your loan, get a guarantor.
A guarantor signature could help you close on your home loan. Though obtaining a guarantor for a house loan is not required, the third-party assurance aids in the faster processing of your application. However, before you look for a guarantor for your home loan, you should be conscious of the risks associated. Once a guarantor signs on your behalf, they are responsible for your loan payment as well as their own loan eligibility.
Make a down payment by putting money aside.
The government of India allows you a maximum loan of 80%, which means you’ll need to put down 20% on a home. It’s a good idea to start saving early if you want to buy your dream home. Saving even 20% is substantial, and it isn’t always feasible.
Choose the best EMI plan for you.
When applying for a home loan on a single income, this is likely the most significant factor to consider. Consider how much you will be able to pay each month on your home loan. To keep your family running smoothly, your house loan should be no more than 40% of your net income. Consider increasing your EMI for a shorter loan term if you have additional sources of income other than your monthly salary. Also, keep in mind that the best term for a home loan is 15-20 years.
Changes in house loan policies, interest rate fluctuations, and any government reliefs should all be kept in mind.
The amount of income your property receives should not be a decisive factor in whether or not you buy a house. Every income bracket can find a home if they do their homework on what would be the best fit for them.
Now that you know how to buy a home with a single income, book your dream home now!