Tips for pooling in funds for your new home
Finances are the prime factor before you decide to buy or build a home, be it new or old. When you save a considerable amount of money or arrange it from other sources, you plan for getting a haven of your own. In case you have money to start the project but there is still some amount left to fulfill your requirement in home building then borrowing is a good option. Here we are bringing some institutions and methods that would help you to borrow money with most benefits.
In India, there are housing loans available from leading public and private sector banks as well as there are companies which offer loans for house construction. Securing funds for your new home is easy when you know whom to approach at the right time.
We are going to discuss some major sources to assist that would be helpful to secure funding for your new home
When you have an old property that you no longer want to possess and rather move to a new modernly furnished space, consider it selling off to someone who would give you a good return. This amount you can pool into your dream home fund and combine with other savings to buy or build a new home.
In case, after resale of your old property or pooling in all your savings the amount is not enough for your home buying fund, check out other viable options such as bank loans. Nationalized or private banks all have their own set of regulations for sanctioning home loans to customers. Though they include mortgage as well, there have a variety of loans that you can combine for buying or building a loan. Banks offer loans for land purchase and then construction loan, in case you are planning to custom build the house. For buying a house, you get a portion of the purchase cost of the property. Interest rates may vary from bank to bank as well as the processing fees, depending upon the duration of repayment of the loan. Longer the duration higher the interest rates and the overall cost of the house, so paying the loan amount as soon as possible is actually beneficial.
Visit multiple banks consult the loan specialist and see which offer fits your requirements. The easy monthly installments should not consume a huge portion of your monthly income. Make sure to pay on time and avoid penalties.
There are private firms who help people get loans from different banks. They act as the middleman to process the loan and help you. Though they are not the best of options, you can always check the options before making the final decision.
In case you have enough money but a certain amount is keeping your house building project from picking up, why not take help from family? Ask your siblings or parents if they can lend you that amount for funding your new home construction work. Taking it from a family member would allow you the flexibility of repaying it comfortably, rather than a loan shark ruining your overall finances.
No doubt, since the day you start earning everyone starts saving for their dream home. Pick a reasonable amount at the beginning of your career but with increased salary keep increasing the amount. Your home funding would definitely reach a good sum in few years. Then you might take some loans from a bank and be able to buy a house without any hassle.
Housing loans seem the most convenient of funding your house buying or building needs and exploring them would definitely offer you more insight. Make sure that all the documenting including registration of property and land purchase is done properly, so that there comes no dispute related to the property in future.BuildMyGhar..