How Much Should I Put Down Payment on a House?
If you want to apply for a home loan then you should carefully decide on the down payment on the concerned property. It affects the EMIs, loan tenure, and credit score. Usually, the down payment for a home loan is at least 20% of the loan amount. Depending on your income, funds, and plans, You should decide the down payment you want to pay also keeping the loan in mind. There are lenders who also take less than 20% of the down payment. A lower down payment has its drawbacks too, The EMIs and loan tenure will be higher in the case of a lower down payment. There are certain things you should check while availing of a home loan and also deciding on the down payment for a home loan.
choosing the Right Lender :
Most lenders take a minimum of 20% of the loan amount as the down payment but you can find lenders who take a lower down payment or negotiate with the lender over the down payment. You will also have to pre-qualify for the home loan in order to pay a lower down payment for the home loan. While choosing the lender, Check the things like interest rates, loan tenure, terms, and conditions, etc.
Estimating the Right Value of the Property :
While applying for a loan against a property, Make sure that the value of the concerned property is close to the loan amount. The property at a good location with a trusted developer makes the loan approval much easier for you. It also convinces the lender to provide a lower down payment for the home loan. In the case of a property below 30 lakhs, The down payment should be at least 3 or 4 lakhs. The right estimate of the property will make availing of the home loan more convenient for you.
Deciding Between a Low and High Down Payment :
Choosing between a low down payment and a high down payment depends on things such as loan amount, savings, income, lender policies, etc. Paying a low down payment for the home loan is pocket friendly at the initial stage and more suited to borrowers with lower savings and low requirements but the EMIs and loan tenure are higher. Paying a high down payment for the home loan has benefits such as lower EMIs, and a lesser time period, and if you have sufficient savings then paying a high down payment will not be an issue.
There is no fixed down payment amount. It depends on many things such as savings, the worth of the property, income, previous records, etc. If you have sufficient savings to pay a higher down payment then you should pay a high down payment for a home loan. Availing of a home loan is also a bit easier. In the case of a property below 30 lakhs, The loan can be availed with a lower down payment. Check your funds and savings before applying for a home loan in order to get the home loan scheme there is no fixed down payment for a home loan.