Every third person wants to own a house of his or her comfort. But, buying a property and financing it through a home loan would require a good and foolproof planning. When it comes to financing then, there is no lender who offers 100% of the requirement you mention. An individual can avail only 80 to 85% as loan amount of the value of the property and rest is counted as margin or down payment. This down payment has to be arranged and paid by the borrower to the bank or financial institution. It means a borrower will have to arrange funds up to 20 -25% of the property’s value as down payment or margin money at the time of availing the housing finance. Arrangements for down payments in home loans in India also require sound planning. Liquidate savings: You can choose to liquidate your savings, which is an easiest way that strikes first to mind. One should try to collect as much money as possible by liquidating savings till the date. However, as we know, it is important to keep some savings for contingencies and not to splurge completely those reserve funds as per the future concern. Loans on savings: Sometimes, it is not wise to liquidate savings due to the certain reasons. In such kind of situations, taking a loan against your savings can be a wise decision to make. It is another way to arrange the funds to arrange the margin money required. You can avail the loans at lower rates as a loan is offered against savings instruments and kind of secured form of borrowed finance. Availing a loan is equal to a task and arranging down payment can be equally typical if you don’t have enough funds to use. It is an ideal option that you arrange down payment and your savings has no effect at all. Banks or any other lending authority will be paying only 80 to 85% of the property’s present value in the form of sanctioned loan amount on the basis of home loan eligibility of applicant. This margin is counted on the account of borrower.
0 comments:
Post a Comment