Owning a home is the biggest dream for anyone. By working hard and saving money, taking some more loans, and paying their EMIs for 15 to 25 years, people fulfil that dream. Buying a home without taking a home loan is almost impossible. Moreover, house prices and interest rates are increasing. In this context, there are many things to consider before buying a house. Be especially careful when it comes to taking a loan. What is the income? What are the expenditures? How much is left? All these should be calculated. If the income is at least 30 percent surplus, then one should consider taking out a loan to buy a house. Otherwise, experts suggest that it is better to postpone the purchase of a house.
Check how much money you have in hand before buying a house. Because no bank will lend the entire cost of the house under the loan. Some amount has to be paid as a down payment. A down payment of at least 10 to 20 percent of the property price is required. It varies depending on the lending banks and financial institutions. The higher the down payment, the lower the debt. Also, EMIs related to the loan taken must be paid regularly. It will last for at least 180 months. In the meantime, if interest rates rise, the EMI tenure will increase for a few more months. Therefore, it is necessary to accurately calculate whether the future expenses and EMI payments are sufficient for the income. Non-payment of the EMI due to any reason will affect the credit score. If that happens, future loans will be affected. If the credit score is good, an interest concession is available. Therefore, experts suggest that the decision to buy a house should be taken after considering all these factors.
