07 February 2011
Understand What You Can Borrow
Buying a dream home, and one shops for the most beautiful spacious and luxurious flat. Each one feels that their home must be in the best locality and have all the latest amenities in the campus. But when they actually survey the rates of property they are in for a shock. And another shock comes when they face the loan amount and how high it is and how they can repay it every month.
To avoid this entire hassles one must first do an honest appraisal of their financial standing. Their salary or salaries if both spouses are working will indicate the figure of money coming in monthly. Their assets in terms of car , property or gold also needs to be assessed as they can get personal loans on these. Try to collect maximum amount beforehand to give as down payment as this will reduce the burden of the loan amount. If you are going to sell your old house and then shift into the new then you must assess the value of your old home and also till you get the buyer for your old home you can select the best home loan deal. You may also consider the loan tenure if you are going to get the money by selling your old flat then the tenure may be smaller and you can repay the loan quickly. Gold loans are also available and taking small personal loans may also reduce the amount taken as home loan.
Your financial responsibilities and other expenses have to be critically considered as home purchase involves multiple costs. Down payments, property taxes, loan EMIs, insurance, maintenance as well as interior decoration and colouring of the new house will end up in more than expected expenses. It would be advisable to be honest with your financial standing and also taking advice of an financial consultant would help in the planning of easy repayment and deciding a comfortable loan amount.