Tips to Arrange the Down Payment Money Faster
Jan 23, 2019 Home Loan
When you decide to purchase a house, you start researching the properties that fit your needs and requirements. From the right location to the right price that fits your pocket, the entire procedure is lengthy and time taking. Everything needs to be carefully planned and thought after to avoid any issue in future.
Banks are willing to give you 80 percent of the loan amount to purchase the house. But the rest 20 percent that is the down payment you have to pay it yourself. Arranging the money can be a bit of a task. No matter how much you save, it can sometimes take years before you have saved enough for your down payment.
What can one do in such a case? Sometimes asking money from friends and family is out of the question for us. So what are the options?
Banks are willing to give you 80 percent of the loan amount to purchase the house. But the rest 20 percent that is the down payment you have to pay it yourself. Arranging the money can be a bit of a task. No matter how much you save, it can sometimes take years before you have saved enough for your down payment.
What can one do in such a case? Sometimes asking money from friends and family is out of the question for us. So what are the options?
Provident fund
If your need for a house is immediate and you are sure that later in life you will be able to save enough for your future, then it is a good choice to take your provident fund money and use it to pay your down payment. If you have changed your job, then your company pays you almost two months worth payment. Along with the money in your PF and the payment cheque, you will easily be able to pay your down payment.
Life insurance
Not many people are aware, but one can take the loan against your life insurance. If the loan amount is considerable and can be easily covered by the loan against your life insurance, then it is one option once can look at. Though in the long term it is not a good option, as it only increases your loan burden and you may have to hasten your home buying process.
Extra money
Most people spend their weekends socialising and finishing their pending work. If one wants, they can utilise the weekends by investing some time in learning the market strategies and investing their money. One can also take some classes that can help in funding the down payment option.
These are just some few ways which can help the buyer earn little more and help in funding their down payment. Savings take a lot of time and sometimes no matter how much you save, it is not enough. Having an extra source of income from freelancing is always a good option and is open to many of us. It just takes a right mind space and motivation to take a step in that direction.
These are just some few ways which can help the buyer earn little more and help in funding their down payment. Savings take a lot of time and sometimes no matter how much you save, it is not enough. Having an extra source of income from freelancing is always a good option and is open to many of us. It just takes a right mind space and motivation to take a step in that direction.
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