Finance World

  There are several important guidelines to consider when choosing a property for purchase. After all, purchasing a property for the majority of middle-class Indians is a once in a lifetime decision! So, we thought of listing the   Top 10 guidelines  one might want to take a screenshot and keep this handy… End-use of the property: Before deciding on the property itself, one should question the reason for purchase. Will he be staying there or is it for investment purposes? This will help the borrower determine a lot of things – like location, size of the property, and the trade-offs that need to be made. Type of the property: There are a plethora of options available today: apartments, houses, plots of land, and so on. Another important decision is whether to buy an under-construction property or a ready to move in property. Both have their own set of pros and cons. One can buy an  under-construction property  at a low price point, while a ready to occupy house w...

  Let’s start from the basics- What is a downpayment? The downpayment amount is the sum of money you need to put towards purchasing a home. This amount is not financed through home loans or any other kind of loan. Downpayment helps you to reduce the money you need to borrow. It is also referred to as Own Contribution or OCR in the mortgage industry. Additionally, more significant down payments are preferred by lenders as that assures them of lesser chances of default. It is a mandatory process to get your home loan financed. What are the factors that affect downpayment for a property? The amount of savings you need to put down for a downpayment on a house will vary depending on several factors like- Price of the property –  The most crucial factor when buying a home is the price of the property. Typically, the downpayment amount required by the lender is mainly 20-40% of the price of the property. However, in some cases, it can be as low as 10% of the property value, depending...

  There are many costs associated with   purchasing a property . These go above and beyond just the price declared by the builder and are usually assumed to be general knowledge. However, a first-time buyer will only focus on the basic price, which is the rate per square foot. Additional charges can be on account of GST, maintenance charges, a deposit for electricity and water connection, registration and stamp duty, and so on. Since these charges come under  other costs , banks generally don’t fund this. A borrower should ask the builder to give the exact details of these charges so that he can arrive at the total price of the property and make arrangements for finance accordingly. There are a few optional price components , such as car parking facilities. The list below will assist you in planning for all the charges. List of all property-related charges: Basic price: Developers advertise base price, and it makes up the main cost of the property. GST Tax: On July 1st, 2...

  Home Loan Terms Buying a home is one of the biggest financial decisions that you and your family would ever make and for most of us, taking a  home loan  is the sole way to bring alive our aspirations of homeownership. A  home loan  is an amount that an individual borrows from a bank or a housing finance company (HFC) for the purpose of buying a house / constructing a house. This amount has to be repaid in the form of easy monthly installments (EMI). The property is taken as a security against the borrowed amount by the financial institution. Being well aware of the  home loan terms  works is an effective way to avoid any unwanted surprises when you actually apply for one. Here are 10 terms about Home Loan Terms  you should know  before you sign on the dotted lines! The eligibility criteria for the Home Loan  Do you qualify for a home loan? If yes, how much amount are you eligible for? The lender will assess your  eligibility ...