Tips to Acquire Home Loans in India for Affordable Housing
If you’re seeking a home loan to buy a property in India, you need to know the basic principles of the home loan offerings and the fluctuating rates. Before acquiring a home loan, you need to consider factors like which type of loan you should go for? Which scheme will fit in your budget? Can any insurance plan cover for your delayed payment? The fines, penalties and rewards for the due or advance amount paid.
With the real estate industry booming, it is not difficult for a person to buy a home. A home loan generally known as mortgage is a tranquil means to get financial help to buy a home. The buyer has to make himself aware of the entire mortgage process. Home loans always have a fluctuating rate and are provided based on the market value and the estimation given by the Indian banks and the registration value of the property. You need to be wise enough to avail a home loan with the lowest of interest rates and easy financing.
Innumerable banks and companies have their own set of rates offered to their customers. The various forms of housing loans in India are; Home construction loans, home purchase loan, home extension loan, land purchase loan and existing home improvement loan.
The prerequisites of a home loan are as follows;
- The issuing of the home loan is carried out on various factors such as the person’s repayment capacity, earlier credit history and the price of the property. Other important factors such as your age, qualification, income, assets, stability and dependency is considered in order to issue a loan to a person.
- Acquiring a home loan is a life time process. You need to indulge in indepth research on the loan rates in the market before going for one. Choose the appropriate lender with lower interest rates.
- Loan seekers tend to make the mistake of acquiring deals which are not useful to them when compared to the other deals. You have to take a wise decision before signing a housing loan agreement offered by different banks. Nevertheless, the loan agreement should be signed only after reading the terms and conditions in detail.
- The home loan to buy a property can be applied even before choosing the property and based on your repayment capability; your loan amount will be approved and sanctioned.
- Loan amount that can be availed is up to Rs. 2 lakhs to Rs. 200 lakhs based on your income, repayment capability and worthiness. To provide security, a home loan is secured by collateral.
- Before seeking a loan you need to analyse and check the impact of your repayment on your monthly expenditure. Also the EMI of the loan taken should not exceed more than 40% of your income.
- The eligibility required to get a home loan is based on your repayment capacity and sketch the loan amount beforehand. Also the income of all the family members are combined, the debts cleared and the loan tenure stretched in order to grant a loan. You can also increase your eligibility by showing your performance link income or earned bonus.
- Opt for the interest rates which are best suited and go along with your EMI calculations. Comparison between banks is advisable. You should also do an in depth research on various options of interest like the fixed and floating rate of interest.
- Insurance cover, which is an added cost, is offered by banks to d-safeguard their interest. Insurance covers are of various kinds and you should get the insurance cover as per your circumstances. Also you can get your choice insurance from various companies as well.
- The other costs during a loan process include the administration fee, processing fee, valuation fee and legal fee which account of up to 1%. Opt for a loan package with 0 % additional fee and pre-payment option.
- The necessary documents required for acquiring a loan are the documents related to the rate of interest, pre-payment fee, processing fee along with interest schedule. Before signing all these documents you need to read through and understand everything in detail.
- If you delay the payment process on time, you are liable for a penalty to the banks.
The process to avail a loan is:
Application form should be submitted along with the relevant documents. The documents are:
- Verification of the property documents and supporting documents
- Loan will be sanctioned
- The original property documents should be submitted and the loan agreement should be signed
- Lastly, the loan cheque is disbursed
Also read:
Home Loan Tips
