Down payment is some amount of money provided to the seller before buying a property to guarantee your commitment towards the property. A part of the property price has to be paid from your own pocket after which one can take a home loan or personal loan.
Down payment varies depending on the investment plan or the sellers demands. Heavy down payment may reduce the interest rates while interest rates soar on minimal down payment.
The down payment you pay also affects your ability to qualify for a loan. Banks provide loans depending on your capacity to fulfill the down payment needs and a fixed monthly income. If one is unable to pay the down payment then the loan application may get rejected.
Make sure that the loan programme allows you pay a particular amount of down payment. The loan is designed in accordance with the down payment. Hence decide on a loan provider before finalizing a property and paying the down payment.
If one is unable to pay the down payment themselves then there are other ways to retrieve it. For example one can get money by surrendering some assets like a life insurance policy, shares, etc.
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