The auspicious festive time, with nothing but positive vibes is the best time to take a step towards your dream home. Owing a home is on most people’s life goals. But it is not easy, instead it requires meticulous planning- both personal as well as financial.
To help you financially, HDFC Bank Festive Treats makes the availability of home loan convenient and stress-free. You can avail a home loan at 6.70% interest rate and at a special processing fee of flat Rs 3,000. Government employees can enjoy an exclusive discount. What’s more – existing HDFC Bank home loan customers can get top-up loans of up to Rs 50 lakhs. (T&C apply)
If you are still looking of planning to buy a home, there are several factors that you need to take into consideration:
Acquiring a thorough knowledge of the real estate market: Purchasing a house is a long-term investment, therefore when you buy your dream house it is very important to understand the location of the house, especially in terms of its accessibility to the workplace, the commute options available, among a few. A detailed know how of the real estate market would include a clear understanding of the resale value and appreciation of the property in due course of time, as well as the property taxes involved. The price tag of the house can be justified only when these criterias are also taken into consideration.
Identification of the correct purchase channel: approaching a broker/agent vis a vis directly contacting the realtor can make a big difference to the overall cost of the house. Buying a new house directly from the Realtor, often helps to omit the brokerage to be paid to the agent/broker, thereby reducing the closing cost.
Establishing a budget, saving for a house: when narrowing down on the budget, you must take into account several factors like the Debt-to-Income ratio and mortgage rates, as well as the down payment to be made. Therefore, first things first, you should start saving for the down payment of the house. if you can afford to pay a mortgage on a new home, you are qualified to own one. Debt to Income ratio determines if the borrower can pay the mortgages every month.
Down Payment: the first thing that you need to ascertain is your "affordability" in terms of the down payment. Ideally 20% of the home price should qualify as the down payment. However, this again depends on your financial ability, availability of funds, the timeline and payment slabs as set forth by the property dealer as well as the leniency of the dealer/realtor. If you have saved more than the 20% needed via your savings account, then you can benefit from lower EMIs or shorter tenures as the amount you need to borrow would be lower.
Investment and financial assistance: Buying a house is often a result of a disciplined and regular habit of saving and making planned investments after collecting a decent sum of money. Most of the mortgages are long-term commitments, therefore you should have a very reliable primary source of income, that allows you to save regularly via a Savings Account, and thereby allows you to make a fairly large purchase with ease.
Most of the leading Banks of the country provide options that cater to different pockets as well as take into consideration a wide demographic.
A Savings Account with HDFC Bank has an easy and stress-free account opening process as it is instant, digital and paperless. The interest rates offered are extremely competitive and it allows for easy liquidity of funds, making it ideal for when you want to purchase your home. You can even open one right now.
Even though renting a home also works as an option but our traditional mindset has always established owning a house as an important career as well as personal achievement. Quite rightly so. A roof over the head, is always a necessary requirement. So, make smart investments, save your money regularly and see your dreams transform to reality.
Click here to get started with your savings, by opening a Savings Account today!
Did you know you can save for your children’s education through your Savings Account? Read more to find out how!
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.