On this earth, probably, there would be someone who will be unhappy to have his own home. The charm of owning a home is beyond of all expressions. Everyone dreams of a home, however, a very few of them are there who are successful at fulfilling it. And that is the basic reason why people opt for housing home loans. People go to government or private banks or else they opt for borrowing money from Non Banking Financial Companies (NBFC). IFL Housing Finance is one of the best options for those who are planning to avail home loans. In my previous article I had described about various types of housing home loans. In case if you are still unaware of it then you can go through this link: From Your House To Your Home- Choose Your Housing Loan Wisely to get thorough information.
Apart from all this, there is one more part of home loans that obstruct your dream home come in your way and it is none other than ‘arrangement of down payments’. Whenever someone avails a housing loan for himself, then banks or NBFC can offer hardly 75-80% or 90% at the max and you to take care of rest of amounts. This is a guideline that was set up by the Reserve Bank of India in order to let people make their ‘own contribution’ in getting their home. However, here I’m going to give you precise information on how you can manage your down payments. There are some of the following tips:
Manage your expenses:
Saving is one of the best as well as most appropriate ways to accumulate amount for the down payments. Initiating budgeting at an early age offers an additional benefit in a long run. Making a monthly budget planning your expenses accordingly allows you move a step ahead of others as it allows you to manage your money and save it for your future as well. However, there are some of the financial tools that can also help a buyer save his money for down payments, such as, SIPs, Fixed Deposits, Recurring Deposits, etc. Management of budget kicks out the financial burden at the time of need and you can enjoy smaller amounts of installments.
Avoid all the unnecessary expenses:
Cutting out every unnecessary expense that includes all the non-essential spending can help you out in the collection of the amount down payments. For an instance, when you indulge in activities like, going for movies, eating out, night outs and frequent holidays, etc, can affect your pocket in the near future. Considerable savings for the down payments become quite easy if you avoid worthless expenses.
Liquidate your current assets:
Liquidating your assets is another option when you can accumulate money for your down payments. Now, what liquidation of your assets actually mean? Basically it deals with the selling of your car, jewelry or any of your valuable assets which has been kept safe till date can also help you in funding for your down payments.
Go for a part-time job
You can opt for a part time job as an option that can help you extract more finance to lower down your financial burden while paying your down payment’s amount. And that is obvious that an extra work can help you get rid of crunches of stockpile of down payments at the peak time.
Make appropriate use of current investments:
Now, what this option allows you to do is the significant use of your present investments. It can vary in various forms, as it can be either in the form of an insurance policy, Public Provident Fund (PPF), EPF etc. Finance can be borrowed against PPF, insurance policies and NSCs or else funds can be accumulated in the liquidated from liquidating EPF.
Don’t treat your rental apartment as yours
In case, if you put up in a rental apartment then it is advisable, not to decorate your house as per your wish. As it is not your personal property and you may need to vacate it anytime. Treating your rental homes as your asset can turn out to be a burden on you in future if you dream of a home of your own. It can affect your down payment funding. Also, if you feel that your rental accommodation is much bigger than your need then you can either share your expenses with your partners or else you can shift to a smaller one. Don’t be hesitant in doing so. It can surely help your pocket to manage funds for down payments.
Maintain a small savings account at your home
You can also maintain a small savings account on your own depending upon your needs and capability. It can be either on the daily basis or weekly or monthly too. Gathering money periodically can help you out during your hard times in an effective way.
Make investments wisely
Whether people of our older generations or any financial institution are there, it is always advisable by them to the people to make investments of money wisely as well as appropriately on correct time and proper place. An investment advisor is an expert in this field who can efficiently guide you in getting highest amount of returns on your best investment plans.
Down payment loans
Another option for managing amount for down payments is the down payment loans. There are numerous banks or NBFCs, who lend money to the borrowers under this category. Although this might not be applicable with all the financial institutions or even if a particular bank is offering this product, it might not offer this under all circumstances, but still, a buyer can keep this option in mind as an ultimate helper at the financial crunches at the end.
Believing this article to be enormously useful for your information digests as I have tried my best to cover all the indispensable aspects of management of your down payments. But still, in case you feel any difficulty that relates to the issues of home loans then you can connect to experts at IFL Housing Finance and enjoy your home sweet home.