Being self-employed has a host of benefits, such as independence, work-life balance and freedom of control. But when it comes to buying a house, some key factors need to be kept in mind. For instance, managing the debt-to-income ratio, ensuring adequate funds for the down payment or tax deductions. The good news, however, is that you can today choose a home loan that is specifically tailored to the needs of self-employed individuals.
With such affordable housing loans, you don’t even need to tick off complicated eligibility criteria or need income proof. In addition, the bank professionals will guide you through the process, and if approved, the loan will be disbursed in just 72 hours. The best part is that you get the required support even during repayment. Take a look at a few other useful tips on buying a home.
Consider Clearing Existing Debts
If you are already repaying a business loan or any other type of loan, consider clearing it before applying for a new loan. Being debt-free has major benefits. Although you might have picked an affordable housing loan, it will help you pay the EMIs without any stress. Further, you will be able to tackle the major expenses that come along with moving in to a new home, without burning a hole in your pocket.
Create Good Money Habits
Before applying for an affordable housing loan in India, consider spending practically for a few months. Create a budget and try to follow it diligently. Build a fund that you can use to finance the various additional expenses associated with making a home livable. You could also save for the down payment or paying off other loans for a clean repayment history. This will take you one step ahead towards realizing your dream of owning a home.
Research the Market Well
Before starting the home-buying journey, analyze the real-estate market in the city or location where you wish to buy a home. Know when it is a good time to invest, depending on rising and falling home values. Check for units that are on the market at reasonable prices. Further, in India, the home buying season is usually around major festivals. So, consider a purchase during the off season to get better deals.
Separate Personal and Business Finances
Keep a clear line between your personal and business funds. Avoid investing your personal savings to meet business requirements and vice versa. Consider building a specific fund to cater to daily operational needs and contingencies of your business. This will help tackle business needs without having to compromise on your housing needs. The best way to go about this is to have separate bank accounts. However, in case you have shared expenses, track them regularly.
Stay Within Your Price Range
Consider exploring homes that are priced slightly lower than your budget. This will help cater to emergencies or unforeseen roadblocks. Plus, the extra money can be spent in furnishing, painting or adding features, according to your preference. Lastly, you can also pay off the EMIs early and clear the housing loan. However, in an attempt to buy below the budget, do not compromise on factors like location or quality of construction.
Buying a home is a huge financial decision. However, with some lifestyle changes, affordable housing loans and careful steps, the process can become easy.