Outlook Money
Purchasing a home is not merely a financial decision. It's a long-term commitment that will impact your lifestyle, financial security, and future goals. Here are some crucial signs to consider before making a selection.
Consistent income is the foundation of home ownership. Lenders review job stability, salary history, and overall financial security before approving a home loan.
A good credit score, often 750 or higher in India, demonstrates financial discipline. It can help you get lower interest rates and more acceptable loan terms.
You’ll need at least 10–25 per cent of the property value as a down payment. Also, factor in costs like stamp duty, registration charges, and basic furnishing.
Purchasing could not make sense if you frequently move for job or personal reasons. Renting can be more sensible until you're ready to settle.
Buying a home often aligns with life changes like starting a family or seeking stability. It offers a sense of permanence that renting can’t always provide.
Expenses that are not anticipated occur. Make sure you have six to nine months of living expenses saved even after you've paid for the house so you can deal with unexpected bills without stress.
The EMIs on your home loan should be fairly affordable. Consider the timeframe if your monthly payments leave you with little money for savings or necessities.
If your work and life plans keep you in one city long-term, buying a home is sensible. Property value grows over time, so being settled signals you’re ready for ownership.
Waiting is preferable if your income is unpredictable, your savings are little, or your credit score need improvement. To make a confident purchase, first strengthen your finances.