A Larger Home Down Payment, or A Bank Buffer
Source: HomeCapital Website
Is it easier to take advantage of the full amount of home down payment help even though you have a cash buffer in your bank? – It is a problem many first time homebuyers are asking themselves. The first time buying a home is crowded with many options. In general, navigating can be a tricky situation. Prima facie, it might seem like the full down payment aid doesn't need to be used if you have ample income coming in and a healthy savings habit. Below we're demystifying the matter to provide some guidance.
1. Well-planned decisions- The last decade has been a turbulent one for both the Indian and global markets. From the 2008 global financial crisis to the rising domestic inflation, there are always unexpected situations that may interfere with your real estate and financial objectives. But no matter how good you may be on-trend forecasting, it's best to prepare for the worst. One example is the latest COVID-19 crisis that is rocking the world at large. Markets are in chaos and a second global financial crisis is looming. They are extraordinary occurrences even for those who had prepared well and could only be mitigated with wise and sound preparation. So, getting as much home down payment assistance as you can get in the realm of home buying would make your future much more secure.
2. Verify your options- Although you may not think you need a lot of home buying assistance, it's important to prepare for the worst-case scenario in the current financial environment. It is what is going to keep you safe from the impending financial crisis. And it's a smart choice to get the biggest home down payment given the current scenario because it will lessen the blow. There are several ways to take advantage of a home down payment assistance and a home loan without sacrificing your finances. Consideration of all of your choices is advisable.
For the first time home buyers, the technology-based home down payment assistance program at HomeCapital lets homebuyers make use of half the home down payment amount as an interest-free unsecured loan.
There are plenty of government programs that you can apply to depend on your income level. Those include the central government's Credit Linked Subsidy Program. There are also various state-sponsored home buying schemes for first time home buyers where you can get down payment assistance.
Also, banks still have loans that you can take advantage of if you choose to put your trust in financial institutions.
Source: HomeCapital Website
3. The higher the down payment, the less payable:- If it comes to home down payment, the most important thing is: the larger the down payment, the less you will ultimately have to pay to buy your house. That means you can benefit from the HomeCapital program if you are short of the appropriate domestic down payment sum. The amount of HomeCapital's down payment assistance is dependent on your credit history and monthly revenues. By making use of the maximum amount to which you are entitled, you can stop paying interest on home loans on the same. That would be a prudent choice to stop reimbursing significant amounts. You'd also have your house ownership secured quicker.
4. Good leverage on borrowing:- The greater the home down payment, the sooner you'll be able to apply for future loans. You can pay lower mortgage expenses if you receive financial aid for the down payment and make a greater home down payment. It ensures you will have ample monthly income to meet your financial obligations. It also ensures you'd have a lower debt-to-income ratio, making potential borrowers more secure in offering you an additional loan.
And, as you can see, it makes a lot more sense to opt for financial aid to secure a bigger home down payment with some preparation, patience, and analysis.
