How to Plan Your Finances When Buying First Home?

Buying your first home is a special experience that impels you to save money and enthusiastically focus on your professional and personal life. However, financial buying is a prerequisite for buying your first home, so you can plan other expenses such as brokerage, registration charges and stamp duty and processing fee on your home loan.

It is best for you to also think about how you can best repay your home loan, taking into consideration your income from work and other sources. Take a look at how you can plan your finances to purchase your first home, effectively.

Choose the Right Home, By Evaluating Your Financial Strength

Buying a home should always be the result of a well-thought-out plan. However, due to the rise in property prices, you cannot afford to plan today and buy a home after 5 years. So, to stick to a meticulous plan that suits the needs of the immediate future, you can first check the property prices per square feet in your preferred localities.

After this, decide the size of the home, you want to purchase. You can then calculate the approximate cost. Look for sites that are going into construction. This will help you begin saving for the down payment and will give you time until the purchase booking begins.

Generally, you will be required to pay 20% of the property price as down payment. You can access money for the rest via a Home Loan. You can start saving for your home purchase by investing part of your monthly income in a recurring deposit and relying on your past investments.

Compute Your Monthly Income by Using A Home Loan EMI Calculator

Since home loan is a lengthy commitment, prepare your monthly budget by taking EMI payments into consideration. You can use a Home Loan EMI Calculator, available on various websites of lenders, to determine the EMIs you can afford.

Adjust the interest rate and principal to view EMI prices. For example, if you are aiming to get Rs.70 lakh as home loan, on 8% interest, then put these parameters on the calculator to check the per month EMI.

Then if the figure creates an additional burden on your present income, switch to a lower property price or negotiate interest rates with the lender. This will help you arrive at a decent monthly EMI befitting your income.

Choose an Affordable Home Loan that also Gives You Funds to Furnish Your Home or Remodel It

Many lenders allow you to get a top up loan after one year of successful repayment. You can use the funds from these loans to buy furniture and appliances for your new home or use it for remodelling needs. The hassle-free and affordable Home Loanfrom Bajaj Finserv comes in very handy in this regard.

You can benefit from a bigger sanctioned amount up to Rs.10 Crore on low interest within 72 hours. You also get additional benefits like 3-EMI holiday, top-up loan and much more. In terms of repayment flexibility, Bajaj Finserv allows you to pay off the loan within a maximum tenor of 25 years.

You are also provided with the ease of part-prepayment, with no extra charges or penalty to reduce your loan obligation faster and more easily. So, add in prepayment at least thrice a year based on your salary and increments like your bonus to repay your home loan more efficiently.

Choose an Insurance Plan to Protect Your Asset for A Lifetime

Lenders like Bajaj Finserv also offer customised insurance planson your sanctioned home loan. These insurance policies hold a lot of value for a first-time home buyer like yourself. While you begin to get into the habit of EMI payment and take time to set up your own home, these insurances safeguard your asset.

Choose a lender who gives you access to insurances on your home loan, and prepare a financial plan for it as well. This will put your mind at ease and will lift the burden of home loan repayment on your family in case of unforeseen circumstances.

So, plan for your home purchase realistically, keeping your finances in mind. Later, apply for a home loan with a lender, who offers you the maximum benefits. Observe these few steps to turn your dream of owning a house in to a reality.