6 Home Loan Tips for First-Time Home Buyers

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Home Loan Tips

You visualize your dream home in your mind much before you actually find it. Once you get your dream home there is no looking back, but your finances may not necessarily keep up with your dreams. So, where there is a will there is a way. There are a number of home loans to transform your dreams to reality but you always have to have a few things in your mind while you pick a home loan.

  1. What you can afford – The best sort of loan is the one that you can afford and is easy on the pocket. Do not take impulsive decisions while you select a property. Your house is a basic necessity so, do not play with your present circumstances and put financial burden on yourself.
  2. Save for down payment– Save up! It’s best if you can pay as much as you can as down payment. Paying more as down payment and not as loan will be easier for you.
    Eventually you have to pay less interest on the money.
  3. Check with multiple banks-Before you actually go and apply for a loan. You need to do a little bit of survey. Check and compare loan schemes so that you can opt for the best deal. Don’t be impulsive and go through all the terms and conditions of the deal.
  4. Go for loan consolidation– Nobody likes to pay multiple EMI’s in a month. Be a smart buyer. Loan consolidation, reduces the amount payable per month as you are only paying one EMI. By consolidating loans running simultaneously, you would not only reduce the instalments each month but also the rate of interest which you would be paying on multiple loans otherwise.
  5. Contingency fund- Having a contingency fund is a must at all times. Prepare yourself well. Suppose you plan for a long vacation and you end up overspending. Now where will you pay your EMI from? This is where your contingency fund will act as your money cushion to fall back upon. Save up money that is equivalent to 3 months of your payment amount even after you have paid off your down payment.
  6. Do not fall for Schemes- Real estate developers offer a lot of alluring schemes and offer to attract more takers. Though most of the people are well aware of these financial gimmicks but still a few of them end up getting trapped. So, beware.

Hope these home loan tips help you find the right home loan!

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