The days when only males could receive house financing are long gone! Working women can easily obtain a house loan today to buy the property of their choosing. However, for some women, financing a home might still seem far-fetched. To assist them, a number of financial institutions have developed unique “home loan for women” programmes that may simplify the entire borrowing procedure.
First-time homebuyers who are women have grown over time. However, the majority of single women who apply for mortgages don’t read the fine print. Here are a few fast, clear home loan tips:
Before approaching the bank for a mortgage, a single working woman should have the following in mind:
- Co-applicants are preferred by the majority of banks.
- Even if you decide to add your mother as a co-applicant, the lender can still be unhappy.
- Banks frequently look for guarantors before lending money to a single woman.
- In addition to the principal collateral, banks frequently ask her for security.
8 Home Loan Tips for Single Working Woman
1. Review your Financial Situation
To precisely calculate the amount of the house loan you can service without defaulting on your monthly responsibilities, estimate your affordability by taking into account alternative income streams and investment gains. Search the internet, consult your friends and coworkers, and choose a reputable lender that provides inexpensive house loan interest rates.
2. Invest in a Down Payment
Savings of around 15.61 lakhs are achieved by investing 20,000 per month for five years in a SIP with a return of 10%. The return on a similar amount saved in a bank’s RD at 7.5 percent is 14.60 lakhs. These savings might be utilised as margin and to cover the extra costs.
It cannot be emphasised enough that creating a solid financial foundation is always necessary before making home purchase preparations. For instance, if someone wishes to invest in a Rs. 36 lac Ashiana property, she simply has to put down Rs. 6-7 lac.
3. Add a Co-Application
By adding a co-applicant, female applicants can increase their chance of being approved for a house loan. You may apply for a mortgage with up to three family members who are employed. Women candidates might get a bigger loan amount to buy a property since their combined income would be larger. Additionally, each co-applicant is eligible for tax breaks.
4. Increase Credit Score
Any transaction with banks must take into consideration your credit score. It must be flawless because it functions virtually like your character certificate. Nowadays, everyone has debit and credit cards linked to their bank accounts, thus missed payments will have a bad effect on the credit score. One should make timely payments of the outstanding balances to build a solid credit history within a year or two. A few NBFCs also issue EMI cards based on an applicant’s ability to pay and income. A good credit score will be developed by prompt EMI repayment.
5. Keep your papers ready
Always keep in mind that the less requirements the bank places on authorising a house loan, the stronger your case will be. When requesting a house loan, it is wise to highlight your best qualities. The evidence of pay increases, bonuses, reimbursements, or promotions strengthens your case. You may also demonstrate your track record to the lender by showing them a history of successfully repaying closed debts. Additionally, the lender will already be aware of your reliability if you select a bank where you have an active account.
6. Select the Ideal Choice
Though it might be challenging for single, working women to obtain a house loan, there are advantages for such candidates who can fulfil the strict terms and requirements. Many banks provide house loans to female applicants at cheaper interest rates. For instance, the Her Ghar programme from public-sector lender State Bank of India provides women with appealing interest rates and flexible repayment alternatives. On top to that, women pay less in stamp duty fees. Do thorough study on the items created only for you, then shortlist the one that best suits your requirements.
7. Take Advantage of Government Benefits
The Indian government has established many programmes that directly benefit women who are wanting to purchase homes or who are applying for home loans in an effort to empower and promote female purchasers.
a) Women receive a 1–2 % stamp duty discount, depending on the state, as long as the property is registered in their names.
b) The government recently put into effect the 80EEA Act, which provides that if a man or woman purchases a home for less than Rs. 45 lac during the fiscal year that runs from April 2019 to March 2020, they are eligible for an extra deduction of Rs.1.5 lac.
8. Think About Unforeseen Costs
Most of the time, when you take out a house loan, the amount just covers the cost of buying the property; it does not cover extra expenses like stamp duty, registration fees, loan processing fees, etc. Because of this, it is advisable to go through all the house loan costs and charges before choosing quick home loans in order to prevent a cash crunch.