How to decide the budget to buy a home

The most important rule to observe while you’re planning to buy a home is to keep a close watch on your finances. It may sound a little off the beaten track to first take stock of your financial strength before even taking that first step towards the purchase of your dream home. Naysayers may say that’s perfectly fine to choose your home first and then work your way hard to pay for it. However, truth be told, it doesn’t work that way at all. So then, how do you decide the budget to buy that home of your dreams? We take you through the nuances.

Ask yourself this

Before you take the plunge into homeownership, ask yourself these hard questions and answer them honestly.

1. What is your entire expenditure per month?
2. How much are you left with after the deductions?
3. Do you have enough monthly finance to take you through till month-end?
4. Do you often need to fall back on any fixed deposits or soft loans to tide over your expenses?
5. If you are living in a rented house, and plan to take a housing loan, will you be able to pay both the rent and EMI?

Now the hard truth

When you have aced the above test, you’ll have a fair idea about your financial strengths, or maybe weaknesses, too. Now do this math.

Most finance experts advise applying that crucial 25% formula. This means, if you’re planning to take a home loan, you should ensure your Equated Monthly Installment (EMI) does not exceed 25% of your gross monthly income. Seek the help of easy apps or EMI calculators to see where you stand on your outgo.

Remember the down payment

Most homebuyers who plan to take a housing loan to purchase that dream home often overlook or are ignorant about the down payment. Banks and non banking finance companies will disburse the loan only when you pay them the down payment first. This is a type of security instrument that gives the lending institution an idea about your financial earnestness.

Since most lenders disburse a home loan only around 80% of the house value, you will have to pay the rest as the down payment.

Depending on your financial capacity, you can pay a higher down payment to bring down your EMIs. However, before you do that, remember Point No. 5 especially if you are also living as a tenant.

Factor in the price tag

Now that you have the accurate position of your financial situation, begin your house hunt. By this time you have a realistic price tag in mind and the amount of home loan, you are eligible for. This is when you can check out all the best homes in the city.

For luxury homes that offer an excellent lifestyle by way of amenities on par with global standards, look no further than the elegant abodes from the renowned HM Constructions http://www.hmconstructions.com/.

Each home from this established real estate giant is one to be proud of as an esteemed homeowner. Ranging from 2 and 3 bedrooms to capacious 4 and 5 bedroom homes within mini townships, the homes celebrate their coveted addresses in some of the best neighborhoods in the city.

The best in homes to suit all budgets

When you have a scintillating array of the choicest homes in the market, making that all-important decision to buy one should come easy. Especially when the acclaimed HM Constructions offer some irresistible finance schemes to help you make that important decision. Take a look.

HM Indigo http://www.hmconstructions.com/projects/details/hm-indigo

Each 2 BHK home at this premium township ranges from 1331.95 -1466.13 sqft while a 3 BHK spreads from 1559.59 – 1846.48 sqft. At a cool price tag ranging from Rs 84-92 lakhs for a 2 BHK of your choice and Rs 97 lakhs to Rs 1.14 crore for a 3 BHK, it sure spells a steal deal.

HM Tropical Tree http://www.hmconstructions.com/projects/details/hm-tropical-tree

With the promise of 82% lush green open space HM Tropical Tree offers you a priceless bounty of 3 BHK ready to move in homes at RT Nagar with a sweet price tag starting at Rs 2.56 crore.

HM Grandeur http://www.hmconstructions.com/projects/details/hm-grandeur

Gracefully ensconced on Wheeler Road in Frazer Town, these elegant towering abodes sport. uber-luxury amenities and are spacious 3096.11 – 3372.47 sqft of 3 BHK residences with exclusive balconies and lobby areas. At a starting price tag of Rs 5.46 crore onwards these regal residences are just what you need for a lifetime of royal living.

Now that you know exactly where you stand and you have the best of homes to choose from, go ahead and take that first step towards proud homeownership.

Call us on 8880225555 and we will help you find a home that suits your lifestyle.