How to Finance Your Dream 2 BHK Flat in Mohali
With wonderful infrastructure, connectivity to the city of Chandigarh, ample job opportunities and a resultant social infrastructure, Mohali provides a perfect place to reside. 2 BHK apartments provide the best possible amalgamation of affordability, utilities and long-term value for the potential homebuyers.
Some of the factors on how to finance your dream 2 BHK Flat in Mohali are as follows:
Calculate Your Financial Readiness
In the initial stage, a basic estimation about the approximate income, expenditure, savings and liability in the form of personal loans or credit card dues should be made. This would provide a vivid indication to you about the maximum amount you can comfortably shell out for the home loan EMI without upsetting your lifestyle.
As per the suggestions given by experts, your home loan EMI should not exceed 30-40% of your income. The reason for this is that it essentially creates a contingency.
Search for Home Loan Options
Home loans are the most sought-after and convenient way of raising funds to finance the purchase of homes. Banks, NBFCs and housing finance companies provide competitive interest rates and flexible repayment terms.
While you are comparing home loan offers, remember that interest rates are not the only consideration. Look out for these factors:
- Loan Processing Fees
- Prepayment and foreclosure fees
- Floating vs. fixed interest rates
Enhancing your Credit Score
Your credit score determines your chances of acquiring a loan and also determines your rates of interest for a loan. Having a score above 750 makes you eligible for even better rates.
- This is where you could improve your credit score:
- Pay your EMIs and credit card dues on time
- Avoid applying for multiple lines of credit at the same time.
- Be aware of credit score factors.
- Always monitor your credit report for inaccuracies
With an excellent credit report, the lender will be confident regarding your repayment capability.
Keep Government Schemes and Benefits in Mind
There are schemes available that would help reduce the cost burden for first-time homebuyers. There could be interest subsidies available for specific income groups and hence it would be achieved and an affordable tax burden would be realized. Moreover, home loan borrowers would be able to take advantage of the benefits available through different sections of the Income Tax Act for the repayment of the principal and the interest paid.
Find the Right Place and Project
The presence of your flat in such areas will impact not only your lifestyle but also the availability of funds and the re-sale value. Banks are known to prefer well-developed areas of Mohali that are well-connected and close to the hubs of activity.
- When you select your project, you should consider that:
- His record is also good as a developer.
- The project is approved by competent authorities.
- Legal documentation should be clear and complete.
- This eliminates the potential risks, thereby ensuring a smooth flow of the loan disbursement
Select a Convenient Loan Tenure
This leads to a decrease in the EMI amount and makes it easy to pay off the loan. Yet, at the same time, the longer tenure leads to an increased amount of interest to be paid over a period of time. Shorter loan tenures with increased EMI allow for a higher closure rate with less amount of interest getting paid. In this way, a balancing act has to be performed as per your financial stability and convenience. In many cases, people take a longer tenure loan and make partial payments in order to reduce the burden of the loan partly accordingly.
Long-term Value & Lifestyle
Buying a home entails a whole lot of emotional aspects besides being a sound economic decision. A careful purchase results in years of future bliss and enhanced value. Whether for personal use or to invest, the growth prospects that Mohali has make it a fair option. Most of the current buyers would want 2 BHK flats mainly because they are very economical and offer adequate space with a great rate of return, especially in the case of working professionals.
Conclusion
A home loan for your dream 2 BHK flat in Mohali is no longer a tough job to manage. With a well-planned approach and proper management of a loan plan and financial discipline on your part, home ownership can very well become an easy and rewarding experience for you. An early start and well-informed decisions will certainly enable you to meet the needs of the current and future factors as well and bring you closer to a brighter and secured future with confidence.