Buying a home is probably one of the most significant life-changing decisions of your life. In India, there is enormous societal pressure to be the owner as opposed to taking an apartment for rent. Nevertheless, such decisions that are heavy on the pocket should never be made in haste.
Apart from mentally preparing yourself, you need to have an in-depth understanding and planning of your finances, so as to avert encountering any monetary issues later. This is because, more often than not, purchasing properties would entail taking a home loan.
It is essential to recognize if you can afford to buy a home and are financially ready. There are specific elements one needs to keep in mind before finalizing the purchase:
EMI Affordability
Equated Monthly Installment (EMI) is one of the most vital aspects when it comes to home loans. If you’re planning to buy a 2 BHK flat in Andheri, you need to calculate the EMI you would be paying for homes located in a premium residential locale. EMI affordability is decided by elements like your monthly income, the number of working years you have left, and current liabilities.
Your net monthly income is believed to be the most significant measure for taking a home loan. Generally, your EMI should not surpass 40-45% of your monthly income. You need to ensure that your EMI does not put a strain on your other expenses. You should have enough for other expenditures even after paying EMI every month.
There is always the option of pre-paying the loan, in case your salary increases in the coming years. It is also important to determine at what stage of your career you are taking the loan as numerous banks are hesitant to sanction a loan if you’re approaching the tail end of your career.
Down Payment
Banks are not going to fund the entire cost of the home you plan to purchase. Therefore, once you have checked your EMI affordability, it becomes vital to understand how much you can afford to pay on your own as a down payment.
Once you have selected an apartment from the available homes for sale Thane, then you need to put at least 20-25% of the total cost of the flat as a down payment as banks will not approve a 100% loan. This is why you need to check for savings before finalizing your dream home from the top properties in MMR.
It is also imperative to check your eligibility for a home loan. If there is a difference in the amount you’re seeking and the amount you could get, you have to make arrangements for a bigger down payment amount to cut down on the entire cost.
Other Costs
Apart from the down payment and EMIs, there are other factors that need to be kept in mind before buying a home from the best properties Mumbai. Some of them are the cost of interiors, expenses related to the home loan, maintenance expenditures, costs related to an illiquid asset, and so forth.
Purchasing a home is a huge life-changing financial decision. It is recommended to tread carefully and make a wise well-informed decision after taking into consideration if you can afford to make all the above-mentioned expenses.
Once you feel you’re financially ready, check out IndexTap to look into their extensive line-up of residential properties available in MMR.
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