Gone are the days where buying a house was only thought of after getting married. Today, millennials are striving to be proud homeowners by the time they reach their 30s. Thanks to this, there has been a rise in single home ownership, as buyers today wish to be financially independent and are confident in buying houses on their individual incomes.
If you are looking to buy a property but are worried about managing the finances, this blog can prove to be an insightful read. Sure, standing up on your own two feet and buying a house might seem intimidating, however, with sound financial planning, it is definitely a plan that can materialise. You can apply for home loan and get the required finances for a property purchase. Also, starting out young means that the loan will be repaid in full before you turn 50!
Here are 5 tips to keep in mind before applying for a home loan with a single income:
- Stay financially protected with an insurance plan
Life can be unpredictable, which makes it so important to be financially prepared to face sudden expenses. If you have taken a home loan and are the sole earning member of the family, your dependents would face the burden of repaying the loan in the event of your unfortunate demise. This is why it is better to take a home loan insurance plan for financial security.
- Maintain financial discipline for the down payment
Being financially disciplined is one of the most important ways of buying a house on a single income. Keep in mind that the down payment would be about 10-20% of the cost of the property. This is why it is so essential to start saving up in order to have funds for the down payment.
- Be prepared to incur additional expenses
The down payment and EMIs are not the only expenses you will incur. Do note that funds will be required to take care of additional expenses too. These expenses include the registration cost, stamp duty, interior decoration, water supply, electricity connection, memorandum of title deed charges, and so on.
- Make sure to have a good credit record
Before approving a home loan application, every lender will make sure to check the applicant’s credit record. Having a good CIBIL score can also get the lender to offer a lower home loan interest rate with a bigger amount. It is advisable to maintain a score of 750 to get good loan offers. Having a bad credit score can result in you being stuck with a high interest rate or even the possibility of the loan application getting rejected.
Now that you have read all these pointers, go ahead, speak to a lender, and inquire about their loan plans. Also, make sure to use a home loan eligibility calculator, which will help in understanding the loan amount you can get.
Hey, this is Johny Sehgal. I am the owner and caretaker at Finance Jungle. I completed my education in BSC and now heading towards the digital marketing industry. I usually have interests in reading, playing games and watching movies. I also love to write content based on quality information. The main motive of mine is to provide the top and best quality information to my readers. Finance Jungle is the blog for the same.