How to Arrange Down Payment for Buying A House?
Sep 19, 2017 Home Trading Steps
Arranging money to buy a house could be a quite difficult task. Home loan amount plays a crucial role but that counts for only 80 to 85 percent of the entire cost of the house. What about the amount for making the down payment? Spending all your savings cannot be a good idea because you never know when you might require it. And on the other hand, you don’t want to ask for financial help from parents, family or friends. if you are in such situation wherein you have to arrange all by yourself but finding it difficult to arrange the down payment amount, then here are some options through which you can arrange the amount.
Be productive and start saving more money: we all tend to spend extra money in non-productive ways such as just roaming around, buying unnecessary things like clothes, going out with friends. And we often do not realise it. But we all need to control extra spends, control your weekend hangouts, unwanted shopping, such that you save that money and use when you actually require it. Also, it can be a learning experience for you how you can save money without investing in stocks or mutual funds.
Provident fund: you can try using your provident fund (PF) money to arrange the down payment. If you have just shifted to a new job, you can withdraw money from you provident fund money to buy your house. The PF money is actually your money which you are saving for your old age and using it for your immediate requirement such purchasing a home is not a bad idea at all. Also while changing to a new job, you will get full and final payment as well. so combining it with your PF money can be a good option for your down payment.
Life Insurance policy: did you know you can take a loan against your life insurance policy. If you are left with a small amount of your down payment then you can try this option. However, this option is not the ideal one because it will increase your loan burden but still if you really need money then go for life insurance policy which can speed your home buying process a bit.
These are not the only option you might have some other resources from where you can arrange money or you can even try out other options also. But do keep these options in mind as well.
Be productive and start saving more money: we all tend to spend extra money in non-productive ways such as just roaming around, buying unnecessary things like clothes, going out with friends. And we often do not realise it. But we all need to control extra spends, control your weekend hangouts, unwanted shopping, such that you save that money and use when you actually require it. Also, it can be a learning experience for you how you can save money without investing in stocks or mutual funds.
Provident fund: you can try using your provident fund (PF) money to arrange the down payment. If you have just shifted to a new job, you can withdraw money from you provident fund money to buy your house. The PF money is actually your money which you are saving for your old age and using it for your immediate requirement such purchasing a home is not a bad idea at all. Also while changing to a new job, you will get full and final payment as well. so combining it with your PF money can be a good option for your down payment.
Life Insurance policy: did you know you can take a loan against your life insurance policy. If you are left with a small amount of your down payment then you can try this option. However, this option is not the ideal one because it will increase your loan burden but still if you really need money then go for life insurance policy which can speed your home buying process a bit.
These are not the only option you might have some other resources from where you can arrange money or you can even try out other options also. But do keep these options in mind as well.
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Tyler Meredith
2017-09-28 00:12:45I like that you recommend being productive with your money savings. It makes sense that wasting a bit of money here and there can result in a lot of loss over time. This is something to keep in mind because I tend to do things with my money that I don't necessarily need to do and actively saving the money that I'd otherwise spend could be very helpful to save for my down payment. http://thepyeteam.com/communities/tomball-tx-area-guide/
