To buy your dream home is considered a great achievement in many cultures. People across generations and economic statuses consider that buying a home is their greatest achievement, regardless of age or financial status. Though millennials are formulating a lot of things uniquely, they seem to match with the previous generations on homeownership. Millennial women, on the other hand, own homes in this modern market, while the majority of homeowners in the previous generation were men. Most millennials want to buy a home before the age of 30, which raises a lot of concerns about buying a home on a single income. In this section we will discuss more on how to buy your dream home with a single income.
Co-ownership is widespread in countries like India where marriage is considered a basic social institution. However, millennials are shaping the landscape significantly, and single-family homeownership is on the rise. A home may be obtained on a single income for many purposes. The consumer may not be married, the customer is sure about buying a house on their income alone, the buyer may require more freedom on the property, the buying group has a sole source of income, or they simply need it to be a single income investment.
However, for some people, buying a flat in Kochi, kottayam or anywhere in India with a single income can be difficult and daunting. Buying a home for a living can be a daunting task, even if you are buying your first home. To assist you get started, here are a few pointers that you should analyze.
Improve your credit score
You need to make sure you have a strong credit profile when applying for a home loan prior planning to buy your dream home. Do not make any major purchases before applying for a loan. At the same time, canceling credit cards before applying for a loan can lower your credit age. It’s a wise decision to lower your credit limit.
Buy a protection package
You and your family need financial protection in the event of unemployment, accident, or death that could affect your credit. Short-term and long-term premium plans are available to protect single-income investments from unforeseen events that may lead to non-payment.
Find a guarantor to help you with your finances
A guarantor’s signature will help you pay off your mortgage. Although you do not need to get a guarantee for a home loan, a third-party guarantee will assist you to process your request faster. However, before looking for a guarantor for your home loan, you should be aware of the risks associated. When you sign a guarantor on your behalf, they will be responsible for your loan payment and their creditworthiness will be significantly reduced. In most situations, the guarantor is a family member.
Set aside money for a down payment
In Indian government provides a maximum of 80% of loans, which implies you have to invest 20% in your home. If you want to buy your dream home, you need to start saving as soon as possible. However, even the 20% savings are huge, which is not always possible.
Choose the best EMI plan for you
This is the most important factor to consider when applying for a home equity loan. Consider how much you can pay each month on your home loan. For your family to run smoothly, your mortgage should not exceed 40% of your net income. If you possess other sources of income from your monthly salary, consider increasing your EMI for the short term. Also, keep in mind that the best term for a home loan is 15-20 years. It is good to pay attention to changes in home loan policies, fluctuations in interest rates, and government relief.
Also Read: What To Choose Flats Vs. Villas?
Conclusion: Tips to buy your dream home with a single income
Whether your home earns a single or dual income should not be a determining factor in whether or not you are buying a home. There is a home for each revenue bracket, provided one educates themselves completely on what would be a proper suit for them.Whether you are looking to buy or invest in an apartment project in Calicut, Kochi or anywhere in India with a single source of income, follow these tips to buy your dream home with a single income.