Skip to main content

Tips to Save Money for the Down Payment of your New Home




The decision to purchase a home is not an easy one. It requires a whole lot of planning and careful scrutiny of various factors. Of late, the demand for home loans has increased substantially due to the host of tax benefits provided to a borrower.
The primary step to this long journey begins with “Down Payment”.
More often than not, it is extremely difficult to arrange money within a short period. Down payments are a means to ensure your lender that you are capable of dealing with the finances of the borrowed amount, and essentially establish a working relationship.
The down payment usually comes up to a whopping 20% of the property in consideration and is essentially your primary investment amount in your home. Increasing it will directly reduce the magnitude of risk on the lender. More so, it underlines the buyer’s commitment and ability to complete the deal and indicates the buyer’s fidelity in making the loan payments.
The concept of zero down payments is usually not advisable. A borrower must always opt for paying off some amount of down payment while commencing the deal. Zero down payment loans are usually offered for far smaller amounts and are hard to obtain.
Additionally, down payments never include miscellaneous expenditure such as property taxes, registration charges, transfer charges and stamp duty costs. Most loan providers include these costs in the total loan amount.

Below, we’ve listed down some preliminary tips that will help you to save money to make the down payment of your new home:

  • Plan well in advance so that your smaller savings can accumulate to a larger one at the time of making the down payment.
  • Save on a monthly basis in order to avoid hassles towards the time when you’re actually making a down payment.
  • Borrow from family/relatives for the amount that you may be falling short of.
  • Apply for a personal loan so that it is convenient for you to make the entire down payment when you’ve planned to make it.
  • Save your tax refunds as fixed deposit in banks.
  • Curb expenses on a rented house

Comments

Post a Comment

Popular posts from this blog

Karnataka notifies RERA

Karnataka notifies RERA BENGALURU : The Karnataka government has notified the  Real Estate   Regulatory  (Regulation and Development) Act on Monday making it mandatory for all the builders to register with the regulator. The Karnataka Real Estate (Regulation and Development) Rules, 2017 shall come into force from the date of their publication in the Official Gazette, said Kapil Mohan, principal secretary to the Karnataka's department of housing. Last week, the Karnataka Cabinet had approved the Real Estate Regulatory (Regulation and Development) Act with a few changes, paving the way for the setting up of a regulator for the sector. According to the Karnataka  RERA   Rules, the builders should disclose the size of the apartment based on carpet area. The rule also mentions that for ongoing projects that are yet to receive a completion certificate, the promoter shall within a period of three months of the application for registration of the project with ...
Post a Comment
Read more

Points To Remember Before And After Buying A Property

Points To Remember Before And After Buying A Property Points To Remember Before And After Buying A Property As is obvious from the title, our attempt here is to make our readers aware of the things they should look into before buying a property, and equally important, what they should remember after they buy the property. Let us jump straight to the first part of the subject, “Points To Remember Before Buying A Property”. Whether you are buying a property for investment purpose or for own stay,  it needs to go through certain evaluations and checks to mitigate any possible risk before one takes the final call. We hope the points discussed in this article, would benefit you in making your next purchase. Purpose of Buying:  Even before you start your search for a suitable property, you need to have absolute clarity as to the purpose of your purchase. Your criteria for evaluation and comparison changes based on your purpose, be it for own use, or for renting or...
Post a Comment
Read more

Store your property documents online- Top 3 benefits of moving to a Digital Platform

Store your property documents online- Top 3 benefits of moving to a Digital Platform Store your property documents online- Top 3 benefits of moving to a Digital Platform BENEFIT #1: Quick and Easy Access Have you wasted hours trying to find the one document you need? Searching for documents through a library of file cabinets is tedious and involves a lot of energy. On the other hand, documents stored digitally can be easily tracked and retrieved immediately during an emergency. Digitized documents can also be shared with anyone who needs it in real-time, which is usually not possible with the paper documents. BENEFIT #2: Enhanced Security and Greater Reliability Who can you turn to for help and aid, if your property papers have been misplaced, lost or stolen? Property documents are important and having adequate security and control is imperative. Hard copies have a high probability of being damaged either by a flood, fire outbreak, or any other  force ma...
Post a Comment
Read more