A Guide to Property Financing When Buying A House

A Guide to Property Financing When Buying A House

Buying a house can be a challenging task to complete, but nonetheless an important one. With the expansion of your family, buying a home automatically becomes a priority. But as the property rates keep skyrocketing, it has become nearly impossible to invest in a home without pondering it countless times. You may find property financing complicated, however, you can sort out through proper guidance.

EMI house loans take away a considerable amount from your finances and may carry on for an extended period if you have taken a loan. Because of these reasons, buyers often hesitate to buy a house. 

Considering these reasons, real estate developers have introduced payment options for the benefit of buyers. Builders are now focusing on introducing offers that encourage buyers to invest in the property before construction and possession. There are now multiple payment plans available to opt for to get a hold of your roof.

Things To Consider Before Buying A House

Other than the amount required for your property possession, there are other factors to consider before buying a house. These considerations include ease of transport, schools, recreational areas, offices, gyms and other amenities. When applying for a land loan or for your home, you should analyze the cost and benefit to determine if the property is worth investing in and you are picking the right real estate financing option.

Payment Plans

When buying a house, if you run short on finances, different payment options can come in handy. Builders consider this and offer payment options such as the following:

  • Construction-Linked Plan (CLP)
  • Down-Payment Plan (DPP)
  • Time-Linked Payment Plan (TLPP) 

These payment plans allow buyers to fix their prices even before they purchase them.

Whether it’s a commercial property loan or for a home you might need to consider that there are certain risks included in property financing, such as delay in possession, deliverance of the property that doesn’t correlate with the sample and also, increase in prices at the time of possession. These are crucial factors that can impact the buyers negatively from buying the property.

EMI Options

Builders have introduced EMI sharing options to make payments more manageable. EMI is advertised as “No EMI till possession,” however it operates differently for loan borrowers. “Full sharing of the EMI” option lets the builder pay the interest of your EMI. In contrast, “Partial EMI sharing” enables the builder to pay a proportion of the interest component of your EMI. This option for EMI is only applicable for a certain period, but after that, you would have to pay the complete EMI. Some real estate developers even have a fixed rate of interest which can become demanding for floating-rate borrowers.

There are many factors a person considers before buying a property. Even after fitting right in all aspects, you could still get confused about which options actually to opt for. To avoid this, it is better to do thorough research and get a helpful guide because buying a house is a one-time investment. 

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