Buying a new home means you have officially ascended the ladder of success. Just the decision of making this important purchase brings on a lot of excitement as well as uncertainty about what you should do, more so if you are a first-time buyer. Read on for crucial information about the must-haves for purchasing a new home in 2020.
Know about CIBIL score
Buying a new homerequires a large loan amount with a long tenure. Therefore, as a borrower, you must evaluate one of the most crucial financial aspects to determine your homeloan eligibility – your CIBIL score. You must have a minimum CIBIL score of 650 or above to avail of housing finance at affordable interest rates.
Keep the budget in mind
You must have a stepwise budget plan for your expenses to ensure EMI affordability. You can use the home loan EMI calculator and find what your monthly payments would be and how to balance out the eventual monetary requirements based on the home loan rates. Having a budget will also help you understand the nature of your finances and how much you can afford, which can help you avoid crunches in the future.
Additional Read: How to Plan a Right Budget for New House this 2020
Employment stability is crucial
Job stability ensures a steady source of documented income, which is a critical factor in determining your eligibility and repayment capacity. And, before applying for housing finance, use a home loan eligibility calculator online.
Save up for emergencies
Having a well-funded emergency account will never disappoint you. It will ensure your security in case of a financial or employment hiccup. You must have sufficient backup, especially while buying a home because it will allow you to not default on your EMI payments. You can look up various creative strategies to help you build an emergency fund that secures your finances when buying a home.
Get rid of debts
Get rid of credit card debts and EMIs from previous loans, if any. Doing this will significantly improve your chances of getting a home loan in 2020. However, if you cannot get rid of a mountain of older debts, resolve them before applying for housing finance. However, you can apply for a loan if your earlier debt is small. The best way to decide on the kind of EMI you can afford is by using an online EMI calculator for home loans.
Additional Read: Why is 2020 the Right Time to Buy a House
The bottom line
Adhering to the stepwise plan listed above will help you understand a great deal about your financial capabilities.
Are you looking to buy a home soon? If so, then reach out to Tata Capital for a housing loan. We offer housing finance at attractive home loan interest rates with minimal documentation and a customised repayment tenure.
Don’t wait before it’s too late! Get in touch with us today to take a step towards owning the home of your dreams.