Planning to buy a house? Funds are not always available in surplus and when it comes to buying your dream house, final amounts do exceed the budget one had in mind. In such a case, should the person let go of their dream home and wait for something else to come along? Well, not always. One always has the option to borrow the extra money and get that house. They can repay the borrowed sum at a later date.
Today there are a number of options for a person to get a home loan from. You can visit NettiVipit to know more.
So, can you buy a house with only a home loan? Is personal loan a viable option to help you buy that house? Let’s find out:
Personal loans cannot be used to buy you a house. A home loan is a big loan and is spread over years, classifying it as a long-term loan. Such loans require security, collateral, and a sizeable down payment.
Though you can take a personal loan much before the mortgage and use it for a down payment and reduce your interest rate for your home loan, it is not an advisable choice. Simply because such unsecured loans come with very high rates of interest and what you save by getting a sizeable down payment for your home loan or mortgage, will be spent (or even more) on your interest payments.
Though getting a mortgage or a bank sanctioned home loan can be a tiresome and time-consuming process, it is a smart choice when it comes to repaying it. You can compare different rates from banks and choose the one that suits your budget and offers more than others.
If needed, you can take a personal loan to help you consolidate your old loans or repay them on time. This will help in improving your credit score for your home loan. However, ensure this is done at least a year in advance so that you have enough time to pay back at least a good part of the personal loan.