How can you devise ways to arrange for your down-payment? Keep the following pointers in mind before taking the plunge.
In literal sense, down-payment means the initial payment made when something is bought on credit.
While planning to buy a home, we should keep in mind of ways to finance the home in two parts, i.e. down payment and EMIs.
The thumb rule says that higher your down-payment, the lower your loan and monthly payment would be.
Here are some tips:
* If you have applied for a home loan, try and set aside some money from that;
* Cut down your outings, vacations and frequent trips to malls. You will end up saving a lot of money;
* If friends and relatives are the ones who you can trust, try and borrow some money from them;
* Take up a part-time job for some time;
* Raising money by selling your investments is generally not a good idea. However, if need be, then you can opt for this option too;
* Gold loan is also a safe and simple way to arrange for finances. A gold loan is available for tenures starting from six months upto 48 months. As per prominent banks, one can avail a minimum of Rs 50,000 onwards. Gold loans for less than Rs 50,000 are also available for rural markets;
* Maintain a separate saving account as this is a convenient way to save. Ensure that you never use the savings for any purpose other than your down payment and new home expenses.