Get the Right Financial Advice with Professional Financial Advisors in Caroline Springs

1. Get the Right Financial Advice with Professional Financial Advisors in Caroline Springs Choosing a home loan without financial planning is like shooting in the dark. You would end up feeling overwhelmed with all the expenses that you didn’t take into account, along with home loan EMI payments. Proper financial planning will not only help you manage your expenses better, but also help you make your dream of buying a home in Caroline Springs, come true. When considering your home loan application, financial advisors often look closely at your debt-to-income ratio. Your monthly debt obligations drawn against your monthly income is a good way to gauge your paying capacity. So get your credit card balance down as low as possible and consolidate your debts into lower monthly payments. Currently you get 80% of property value as the loan amount. The down payment of 20% is what you need to arrange. This amount should not be raised through loan or debt. In fact , it is recommended to have at least 40% down payment from savings so that your loan would not be a big burden on you. The best way to do this is by putting aside an amount equal to the EMI in a recurring deposit. This will not only get you into the habit of saving that amount every month but also help you accumulate a bigger down payment. The way you have handled debt in your past is the best indicator financial institutions have of how responsible you would be with future debt. Missed payments or accounts in collections are going to give them a pause.

2. Anything above 750 is considered a good credit score. All financial institution usually looks at the credit score as one of the many checks they do before advancing a loan. So it is advisable to clear all your existing loans or debts like car loan, personal loans etc. before buying a house on Home Loan. You may still be able to get a loan without good credit, but the structures and rates available to you might leave you paying more than you should. A good credit score gives you many benefits, such as low interest rate, higher loan amount, quicker loan approval process and longer repayment period. At least you should have a margin of 3 months EMI as reserve. It might seems like a small amount but this reserve will come handy, in case of any unforeseen circumstance where you are unable to pay EMI on time. Any default on EMI can spoil your credit worthiness for future. Most of the builders offer you a house with basic structure. You need to do the interiors on you own. People have a tendency to overspend on omteriors and it comes out as a major expense. Therefore, it is advisable to fix a budget for the same in advance and strictly adhere that budget to avoid any future financial shocks. If you want to buy your home in Caroline Springs, your professional Financial Advisor in Caroline Springs helps you and guides you through the journey.