Tuesday, 14 November 2017

Financial Resolutions to buy that dream home this year

Each year, the New Year embarks the “new” beginnings. We tend to welcome the year with a list of new resolutions. Globally working population plans addition of new assets every Year. If you look closely, you will be amused to find a plethora of marketing campaigns planned to target the dawn of upcoming Year making a Sales hallway.

One such close industry that welcomes the consumers wholeheartedly is the Real Estate. However home buying is always an emotional decision. Many of our forefathers have spent their whole lives embroiling the mathematics behind buying a dream home. The times have changed and so are the financial equations. Credit is readily available to meet your heart’s desire and that too as you begin to earn.

If you too are planning to buy that dream home this coming year, here are the top 7 financial resolutions you would need to meet with, to reach your heart’s desire.
1.       Build good credit history
As you decide to buy your home, you must begin efforts in that direction. Credit is the crucial aspect of any home deal. Whether you are a high net worth individual or on the leaner side, you would need a home loan for the purpose. To raise low cost credit, it is important to pay attention to your CIBIL rating. You need to ensure that you take steps that boost your credit score and increase your credit worthiness.

2.       Payoff outstanding debts
Before you approach a lender for enquiring about loan eligibility it is important to work on your debt to income ratio. If you had have any current credit accounts, it is prudent to close them before applying for home loan. It is common to apply for 70 to 80 per cent value of property and thus you would require huge potential to borrow.

3.       Do not raise credit enquiries
Every loan query you make is reported on your credit report. Thus you should ensure that you do not make credit queries at least six month prior your home loan application. The more enquires you make, the more impact it would make on your credit report.

4.       Become pre-approved for loan
By maintaining apt credit utilization ratio and repaying your loans and credit bills on time, you would build a good history. In the meantime the good history would make you preapproved for loan. When you are pre-approved for a loan, say ICICI home loan, you directly get to see all the benefits of the deal right in your inbox. Generally lenders contact you online to inform you about the preapproval for credit products. With loan pre-approval you get more choice and flexibility to choose loan terms.
5.       Save for wet days
Home loan sums are huge. These are thus long term obligations. You should always plan ahead of time. It is important to ensure the backup plan for loan instalments much in advance. Whether it calls for frugal living or saving every day, you must have a surplus amount for at least next three instalments.

6.       Research and make lists of available offers
While each of your loan query is recorded on your credit report, you can still ensure an escape from this. You need to ensure only soft queries while searching for interest rates and other loan queries from bank. Herein you can either ask the bank officials to raise soft query or hire a professional broking firm or credit counseling agency to help you. They have contacts and they can search a cheap deal without making footprint in your credit report.

7.       Credit planning
All in all it would take a 360 degree credit planning before you home in your dream possession. As important it would be to research the best of the deals in your preferred location, as would be planning for adequate funds for the same. Using these tips you could successfully reach the target.

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