Buying a home is a dream comes true, because this dream is as old as civilization itself. However owning a house and still maintain a simple financially-free life is a complex issue. This important milestone in the life of a family or an individual poses many questions and riddles which can be addressed by personal financial planning.
Before deciding on buying a house, it would be worthwhile to take into consideration certain key questions such as:
Should you be buying a home or renting a home?
Based on your income, how much can you spend on your home?
When should you buy your home?
How much mortgage/loan would you get?
Before you buy or build your home, you need to review your current Financial Plan which includes monthly savings, life insurance or saving for retirement. There shouldn’t be any ambiguity about your ability to afford housing-related expenses, your debt as lenders consider your debt when qualifying for a loan and the changes to be expected in your lifestyle as your monthly household expenses may increase bringing about changes in your financial plans.
One task list for buying and building a home for eventually owning it could be unending, however, the only solution is to plan early and save wisely. Bad decisions about building a home can result in loss of a life-time savings or bankruptcy. ArthaYantra helps you in wisely treading this decision to optimally achieve your goal.
Understand how buying a home could impact your present and future financials. Or plan for buying a home using our online financial planning software ARTHOS. You can do this by creating a goal of buying a home in the goals section. In addition to this Buy vs. Rent research report of ArthaYantra would give deep insights into buying or renting a home from a personal finance perspective.