like mutual funds or recurring deposits how you should go about itlike any big financial decision you must assess your preparedness before buying a home a wrong decision can hurt your financial future so do assess if your job will always be located in the same city where you are planning to buy a house if you can afford home loan when you are already dealing with outstanding loans such as education loan or personal loansmart planning to own that housecheck your existing and expected future expenses as well as income and try to find out the amount you can easily afford without compromising on your financial objectives suppose your estimates say that you can pay an emi of rs 30000 if you take a home loan then do a reverse calculation as well this means you should find out the value of a home you can afford if you pay an emi of rs 30000 considering the prevailing interest rate you can avail a home loan up to rs 40 lakh interest 85 per cent pa for 30 years tenure ie property value of rs 50 lakh considering ltv of 80 per cent so you need rs 10 lakh to pay for the down paymentnow you can look for a home at your desired location below rs 50 lakh value you must arrange the down payment before you finalise a property you can reduce the property value if you are finding it difficult to arrange the down paymentto get that loanusually banks look for credit score of 750 for granting a loan it is important to look after your financial health when you are in the 20s pay your debts for credit cards or personal loan on time and regularly to keep your credit score healthybuying a home also brings in big financial responsibility therefore you should maintain a financial cushion to avoid a situation of liquidity crunch and financial distress you should start an investment much before you plan to buy a home to pay for the margin money and maintain an adequate financial cushion to regularly pay the home loan emis