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Raising money: How to buy your dream house

Buying a home is everyone’s dream but not a lot of us can afford to do so without some form of financing or a loan. Usually, the best way to get money for buying a house is with the help of a bank loan. In some cases, this too might not be possible or can prove to be expensive. However, there is no need to worry as there are other methods to raise money for buying your dream home.

The first step is to analyze, how much money you can provide on your own. While it is not wise investing all your savings, it will come down to clearing out a large chunk of them. The next step is to acquire loans from family members or friends because they can come at a much lower interest rate than the rates offered by the bank. The remaining part should be raised from the bank. The interest rate that you will have to pay the bank will be determined by several factors. Keeping good credit and a high credit score will go in your favor while having defaulted payments in the past can land you with a high interest loan.

You can also change mortgages on your house once you buy it if you find a cheaper option. Usually, this is done to clear one bank’s loan in the stipulated period of time in exchange for another at a lower interest rate.

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