Buying a new house is everybody’s dream but because of some reasons, paying the full price of the house at a time becomes difficult. A person’s long terms savings may not be enough for making full down payments. There are several factors which affect the down payments. Some of them are described below.
Credit score remains a major factor in determining the amount which is required to be paid as a house down payment. Credit score is a rating which credit companies give to a person and are determined by analyzing a person’s capacity to repay the house loan by considering his debts which are outstanding from various companies. People with poor credit history are required to pay a large sum of money as the down payment where as vise verse is true with the people who have good credit history.
Home down payments are directly affected by employment therefore different financing institutes as well as various banks require that their clients should have job stability to qualify for their loan program. A regular income is considered as an assurance that the borrower will be able to repay the given amount of money in a time period that he has agreed upon. The annual salary of a person is used to compute the down payment. Number of employment documents such as pay slip or the company ID may also be required by the financing institutes.
The total purchase amount of the house is also an associated factor while considering the down payments. House is priced according to the location, size and facilities. A bigger house have greater down payment than a smaller one. Properties which are located in posh area are highly priced than those which are located in some other area of the city and fully furnished places demand more down payments than an empty house.
With the financing institutes becoming wiser, it is business that drives them to seek new clients. While helping with the down payments alternative factors are also considered which include other properties such as business establishments or source of additional income like home based jobs or online jobs of the client. These factors are considered to check whether a person will be able to repay the total amount within a given period or not.
Seasoned savings also plays an important role when it comes to down payment. If a person has been stocking up funds in a saving account and he can later show it to the financing institute that the balance has not changed over a long period of time, then this money can be used to verify the down payment for a new house.
Buying a house is regarded as a difficult process because of the large amount of down payments which are involved. Therefore before buying a property, a person should plan it out carefully to avoid financial crises in the end. Hiring a realtor who can help a person in buying a property where low down payment is required is always a good idea.
Harji Realtors is one of the leading real estate agents in the region of Chandigarh, Mohali and Kharar.
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