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There is a home for every dream.

 

Buying a home is a big deal, but it isn’t everything. People across ages and financial statuses believe their greatest achievement would be buying a home.

A home may be bought on a single income for various reasons. Here are some tips to help you with it.

 

Work on your credit profile: When you apply for a home loan, you must make sure to have a good credit profile. Do not make costly purchases before applying for the loan. Reducing your credit limit would be a wise move to make.

 

Get an insurance protection plan: In unfortunate events of unemployment, accident, or death, you and your family will need financial protection that could cover your loan. There are short and long term premium plans that offer protection from unexpected events that could lead to non-payment on single income investments.

 

Find a guarantor for your loan: A guarantor sign may help you seal the deal with your home loan. Though it is not compulsory that you get a guarantor for a home loan, the third party assurance helps process your loan faster. Once a guarantor signs for you, they are liable for your loan payment, and their loan eligibility goes down significantly. In most cases, the guarantor is an immediate family member.

 

Save up for your down payment: In India, the government allows for  a maximum of 80% loan, meaning you will have to make a 20% downpayment on your home. If you aspire to buying dream home, then it would be wise to start saving early. There are other ways to secure a home loan down payment like a loan from your employer, Gold loan, Home down payment loans,etc.

 

Pick the perfect EMI plan for you: Carefully consider how much you will be able to pay for your home loan every month. Your home loan should ideally be 40% of your net income to run your family smoothly. Also, remember that the ideal tenure of a home loan is considered at 15-20 years.

 

It would be wise to keep an eye out for changing home loan policies, fluctuation in  interest rates, and any government reliefs.

 

Whether your home receives single or double income shouldn’t be a deciding factor on owning a home. There is a home for every income bracket, provided one educates themselves well on what would be a right fit for them.