Everyone at the end of the day wishes to go home where one can do all the things without worries. Owning a home and renting a home makes a quite difference. The house is a symbol which describes the personality of a person. Youngsters today own a house at a very young age with the help of a home loan and this is one of the biggest decision of the life anyone makes.

Individual those who are first-time buyers can go through nerve taking process. While an individual purchases a home it is necessary that he/she knows everything about regarding the loan and down payment.

Following are the points which help a person to stay organized and avoid the mistakes while he/she makes the payment:

Funding your home purchase

Liquidating the long term investment should be avoided so that it can help an individual contribute to funding home purchase. Financial planning gets affected due to liquidating long term investment. A home loan has proved to be beneficial for lots of people and made it possible to own home early in life. The ideal method to make yourself availed with funding a home is housing loan and repay the interest as per the schedule set by the lender.

Down payment challenges

People those who opt for home loan become eligible to make the down payments. While making down payment some people may face issues like he/she might have to keep a certain amount aside every month so that they can deal with financial commitments.  Even though this sounds tough certain methods can help you accumulate the fund for down payment.

Tips for accumulating a down payment

  1. Build a corpus

One of the easiest ways is to accumulate the down payment is by starting to build a corpus from your savings. People those who start saving from the beginning of the career can find this method the best. Saving a specific amount helps a person to control the excess of expenditure.

  1. Considering options like proportionate release

Such options are provided by certain lenders individually to the customers who invest in a construction project for home which are been promoted by selective developers. When he/she opt for such options they can make a small payment instead of a one large sum amount. The construction takes a lot of time and this helps to pay the down payment periodically due to which the lender would release your loan disbursements. Such options help to reduce the burden of down payment.

  1. Opt for a loan against life insurance policies or provident funds

He/she can unlock the loan term saving if there are no other options. A home loan can prove to be a long term asset against insurance or provident fund against home loan.

  1. Seek help from family or friends

The last option to which an individual can stick is seeking help from family and friends. This can be a sensitive topic and depending upon the advisability and viability best judgment can be made.


To make yourself available with a dream home, home loan or applying for PMAY scheme can prove to be beneficial. Depending upon one’s financial condition and circumstances, the size and mode of loan can be selected.