How to save money to buy a house?

When I started thinking about buying a house, I was curious about, "how to save money to buy a house?" It felt like such a big goal, but over time, I found a few strategies that really worked for me. If you're also asking the same question then, here’s what I did. Let me tell you that I started by creating a strict budget. 

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How to Save Money to Buy a Home?

I followed the 50-30-20 rule—50% for essentials, 30% for things like fun, and 20% went straight into savings. This helped me stay on track and focus on saving without feeling deprived. The next steps that I followed are as follows,

• Cut Back on Unnecessary Expenses: I looked at where I could trim down. I moved to a smaller place to save on rent and cut back on vacations, eating out, and subscriptions I didn’t need. It wasn’t easy, but knowing I was saving for a house kept me motivated.

• Monetise Extra Assets: I also sold or borrowed against things I didn’t need, like an old car or some unused gadgets. It’s a good way to give your savings a little boost.

• Open a Dedicated Savings Account: I opened a separate savings account just for my down payment, so I wouldn’t be tempted to spend it. It helped keep my goal clear.

It might take time, but the effort is worth it when you’re holding the keys to your new home!

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Purchasing a home involves significant financial expenditure. Therefore, a little effort and planning will allow you to save a lot of money while buying a home. I am going to share some tips and advice that helped me buy a house last year. Read below to know how to save money to buy a house:

 When purchasing a house, you should explore different home loan criteria and check which benefits you can avail of. For instance, if both the spouses are earning and apply for a loan jointly, then the total loan amount eligibility increases. Similarly, having a woman co-applicant as the first borrower can lower the interest amount.

Several banks provide lower interest rates to female borrowers than male borrowers. This usually varies from 0.01%-0.15%. These small percentages add up to great savings as home loans tenures generally range between 15 to 25 years. This is a great tip if you want to know how to save to buy a house.

The government of India launched PMAY to help people buy homes at subsidized rates. It offers a good way for first-time house buyers to save a lot of money. Under the PMAY Credit-Linked Subsidy Scheme (CLSS), you can get interest subsidy advantages of up to Rs. 2,67,000 against the home loan, if you are a first home buyer.

Houses that are ready to move in might sound great, but they are usually more costly. If it is possible for you to wait, then purchasing a home that is still under construction is a great option, financially. Plus, relatively less documentation is required because there are no previous owners and you have more time in hand to spread the payment, stamp duty, registration charges, etc.. While buying an under-construction house, you must check the developer’s record and RERA registration. I suggest you opt for properties where the developer has taken title insurance.

Never accept the first offer from a developer or realtor. You should always enquire about the best possible rates and amenities and furnishings that’ll be offered. However, make sure the price you quote is reasonable.

I hope now you have an idea of how to save money to buy a house. Good luck!