How to set a budget for your new home?

There are a lot of people who don't know about the right budget to maintain while buying a luxury flat for sale in Mumbai. It is important to get information about finance properly prior to claiming the house. An affordable house differs from one buyer to the next. Figuring out all the element requires more than getting a pre-approval letter from a mortgage lender.

Mostly buyers incline to shop on what the mortgage lender says they can afford, not putting up with other expenditures. It becomes very time-consuming and costly if you don't know about the proper resources and information. Then, this lays in the financial crisis and even a potential foreclosure if you can't afford the monthly payment.

So, here are some pointers that can help you in setting your budget for your new luxury flat for sale in Mumbai.

The 25% Rule Can Get You An Opening

One of the easiest ways to evaluate your budget for your home is the 25% rule, which says that your mortgage should not be more than 25% of your income each month. If you have more debts, add them to the mortgage price to determine how much you can afford.

Expenses Beyond the Mortgage Need to Be in the line

Obtaining pre-approved for a home loan is an important first step in the homebuying process. Buyers have to comprehend all the costs associated with homeownership to determine how much house they can afford. After all, a home mortgage isn't the only recurring charge. There's the homeowners' insurance, taxes, maintenance costs, utilities, and other unexpected repairs.

Down Payment Should Dictate the Purchase

In order to avert private mortgage insurance (PMI), homebuyers have to put at least 20% down on their home purchase. With a down payment below that amount, their mortgage value will go up by anywhere from 0.3% to 1.2% of the loan amount. How much you pay in PMI will depend on the size of the home, your credit count and the potential for the property to appreciate, among other things. The amount you saved for the down payment should also reflect on the house you buy. The less you finance in the loan, the lower interest you will pay over the life of the loan, and the sooner you'll see a return on your investment.

Choose your property wisely

Buyers have a lot of wants and questions about the property. What property to select and what not to. If you are first time buyers and looking for an amazing property then you should go with the list of top builders in Mumbai. They have luxury flats for sale in Mumbai with all the amenities at a reasonable price.

Hence, homeownership is still the dream for many. Without some upfront calculations, you can find yourself with house-rich but cash-poor, leading to all sorts of financial pain. To avoid this, plan your thrift smartly!

Suraj Estate Developers is a marquee real estate construction brand in the island city of Mumbai. Established in 1986, Suraj has over 36 projects to its credit and has developed more than 8 lac sq. ft of construction spanning residential and commercial in the prime locales of Mahim, Dadar and Prabhadevi – all in the heart of Mumbai. With over 28 years of experience in the field of redevelopment, Suraj has independently chalked out a name for itself serving the housing needs of individuals and top corporate clientele.

Today, among its prestigious clientele are ICICI Bank Ltd., Union Bank of India, National Stock Exchange of India Ltd., Saraswat Co-op. Bank Ltd., Gas Authority of India Ltd., Jayprakash Industries Ltd, Clearing Corporation of India Ltd., all of whom have had specific accommodation needs catered to by Suraj. Suraj has also constructed and sold exclusive residential apartment buildings to ICICI Bank Ltd, Union Bank of India and National Stock Exchange (NSE)

Founded by experts of Real Estate Marketing, Realatte has added value to top Developers & Aggregators across India & around the globe.