Even with low income, you can purchase a property in 2022. How? With a house loan. Just seek the best bank offering home loans with easy eligibility criteria for salaried persons and those under an affordable housing scheme. Then follow these steps to finance your property purchase strategically.

Plan a Budget

Start with setting a budget to buy your home based on your income and considering whether the income may increase over time. But what expenses in near future should you keep in mind? One is the loan down-payment (10%-25% of the market value of the property) if you meet the home loan eligibility criteria for salaried persons.

Other costs are for memorandum of title deed (0.1% of your loan amount), registration (at least 1% of the property value), and stamp duty (5%-7% of the property value). Besides, there are legal fees, brokerage fees, and water supply, electric connection and interior decoration costs and so on. Down the road, you need to pay for home insurance too.

Although it can be difficult to accurately determine all the non-loan costs, try estimating them at least. Then strategies suitably.

Research on Your Dream Home

You cannot set unrealistic expectations of buying your dream home. So, ensure it fits your budget. For that, here are a few things to consider:

  • Living cost of the city where you want to buy the house
  • Location (outskirts or the heart of the city)
  • Purchasing an independent house, apartment or condo
  • Number of bedrooms needed
  • Amenities like car parking space and swimming pool

All these factors decide the cost of purchasing a home.

Save, Save, Save

Have you already invested in an FD? If it has already matured or will mature by 2022, the returns can help you finance the expenses related to your property purchase. Besides, try to avoid spending on unnecessary things, and start cost-cutting.

Improve Your Credit Score

A lending bank considers both your income and credit score before granting your loan request. So, when you decide to take a loan, be prepared not only with the documents required for a home loan but also a high credit score. If the score is not already good, try boosting it by:

  • Promptly paying your outstanding dues in full
  • Not applying for multiple credit products within a short period
  • Getting any credit report errors corrected

A high credit score can help you qualify for a loan with the lowest interest rate.

Take a Home Loan

Apply for a home loan at a lending bank that offers loans with a subsidy benefit of up to ₹ 2.67 lakhs under Pradhan Mantri Awas Yojana (PMAY) for low-income group people. Once you meet the eligibility criteria to get a loan under PMAY, be quick to apply because the scheme is valid till March 31, 2022, for the low-income group and economically weaker section of the society. Keep one important thing ready: home loan ke liye documents. Then you are good to go!

After buying your dream home, keep using the house loan EMI calculator to make all repayments accurately.