Home is where the heart is and rightfully so. Everybody dreams of having a home that they can call their own. It is also one of the proudest achievements that one can boast of. So is the path to this achievement easy? Certainly yes, if you plan prudently from a young age. Here are some tips to buy a home at a young age.
Create a Budget Plan
One of the basic things to start with is determining what your expenses are and where you spend the most. Create a budget plan and follow it religiously. Cut down all the expenses you think will not affect your daily requirements. Also, make a list of all the activities that account for ‘superficial’ expenses and start cutting down on them. This way, you will be able to compare the amount you earn to the amount you spend and save a lot of money.
It is very necessary to be clear about one’s goals and requirements. You must know what kind of property you are interested in – flat, independent house, villa. Also have clarity on the amenities you will require and the location of the property. This will help you plan your finances well. Based on that, you can work on your dream.
Staying up to date with the current trends will also help you a great deal. Analyze and understand what the prospects today look out for.
Take a Home Loan
If you feel you are falling short on funds to buy a home, consulting a financial institution can help; you can always go for home loans. Today, most banks and NBFCs (Non-Banking Financial Company) offer home loans at a low rate of interest. You can also apply for special offers which the financial institution may curate for you as per your requirement and eligibility. Today, the application process has become really simple as most of the steps to be followed can be carried out online and you can apply from the comfort of your home.
But it is necessary to act wisely here.
Compare the interest rates offered by various lenders and the facilities they offer like top up loan, balance transfer options, repayment period. This will help you to get a loan of your choice.
Also, during the process of borrowing, ensure you choose a repayment tenure prudently, through the course of which you can pay the EMIs without any inconveniences.
Improve Your Credit Score
Credit score suggests the creditworthiness of the borrower and determines his capacity to repay the loan. A good credit score indicates that you have control over your finances and also provides an assurance to the lender about your ability to pay the EMIs without any defaults and delays. A score above 750 is considered an excellent score to get a home loan at a low rate of interest.
So, to improve your credit score, you must clear all your existing dues, credit card bills. You must also pay all the EMIs on time in case you have taken a loan earier. A good repayment history is a way to a good credit score. So, maintain a high credit score before applying for the loan.
So, keep these points in mind and take a step towards your dream home.