As an individual, it is crucial to plan ahead of
the future. Financial planning is one such major aspect to be considered while
looking out for financial investments and expenses. If you intend to buy a
home, looking for the right interest rates and EMI options is a must. Online
policy comparers offer a quick and easy Home loan EMI Calculator that helps
individual understand their eligibility before applying at any loan or finance
institution.
Here’s our quick 6 step guide to attain financial
security while carefully cross checking our quick and easy financial checklist
stated below:
1. Monthly
Expenses:
Having to buy a home in India calls for an
extreme financial stretch considering the steady rise of properties in the
region. As an individual, it is important to have a fixed amount saved for
future financial deficits. One needs to take care of their monthly expenses by
minimizing monthly household expenses by 25-40% the least when they apply for a
house loan. Click here to know: How
to apply for home loans in India.
2. Understanding
the concept of loan amount:
Currently, banks offer 80% of property value as a
loan amount. It is important to consider that the rest 20% of the property
value relies on us individually. This amount cannot be raised through loan or
debts. Most financial advisors suggest a contribution of 40% down payment from
savings to reduce the financial burden. Stamp Duty and other registration costs
accounts up to 5 - 10 % of total cost for house loans.
3. Existing loans
and debts:
The liability of home loan is magnanimous
compared to another kind of loan amount. Hence, it is advised to clear off all
other existing debts and loans including personal loan, education loan, car
loan (as applicable). This not only helps you take financial decisions better
for your home loans but also improves your CIBIL Score. Check your eligibility
stats with easy and quick online tools like home loan emi calculator to
understand the risk factors associated with applying for a home loan.
4. A steady
source of income:
Financial planning can go haywire if there is a
constant absence of regular income. If you work for a sector hit by recession
recently, it is best advised to postpone any kind of financial purchase that
requires a steady job or job stability.
5. Financial Reserve:
In an unfortunate event, where you need to be
able to cash in funds, it is best advised to have an emergency fund with
minimum 6 months of household expense handy. These deposits can be lucrative
for short term investments like Bank FDs, Mutual Funds and others of similar
liking.
These 5 steps are the most basic yet effective
ways to plan your finances wisely while carefully choosing the right house loan
online. Remember to look out for housing
loan EMI calculator prior to applying for the same.
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Share this article & your thoughts with us in the comments below!
