homeloan

homeloan

A majority of people are nowadays availing Home Loan to buy a home these days. One of the major reasons for people availing a housing finance is the introduction of the Home Loan interest rate at lower rate.

With most of the online lenders offer Home Loan rates at around 8.65% along with a tenor as long as up to 20 years or more, it has become affordable to fulfill home dream.

Home buyers are availing a Home Loan and opting for a wider tenor so as to pay a lower EMI and manage a housing loan without hurting their monthly budget.

However, most of the customers want to avail a Home Loan but don’t know what factor to consider while applying for it. This short post will help you get some inputs on steps that you need to follow while choosing a housing finance in India.

Step 1 – Research about Lenders and Home Loan Type

Even before you begin to apply for a Home Loan, it is vital to research and compare various lenders and their loan offers. For this, you can land on a third-party website to compare all Housing Loan offers based on your needs and repayment capacity. Lenders offer multiple types of House Loans such as land purchase loan, home construction loan, fixed rate loan and floating rate House Loan.

Step 2 – Check your Home Loan Eligibility

Unless you have the required Home Loan eligibility, you can’t apply for a Home Loan. Your Home Loan eligibility comprises of your age, income, employment stability, Credit Score, repayment history and other factors. Having good loan eligibility helps you enjoy a higher loan amount of up to Rs.3.5 crores. Some of the standard eligibility parameters are:

  • You should be a citizen of India
  • Your age should be between 25-58 years
  • You should have a salaried individual and have a working expertise of 3 years or more
  • The minimum loan amount that you can avail is Rs.10 lakh and the maximum is Rs.3.5 crore

Step 3 – Check the Home Loan Interest Rates

Your lender will be offering two types of Home Loan interest rates such as fixed and floating ones. Fixed interest rate based House Loan means paying fixed EMI whereas the floating rate means paying variable EMI as per the market conditions. Thus, people having a fixed income can opt for a fixed housing rate and people wanting to make the most of them and with some idea of the market conditions can opt for the other type.

Step 4 – Understand the Documents Required for Home Loan

Some people don’t know the documents required for Home Loans and pay a price by not getting a loan approval. Some of the standard documents required for Housing Loan are:

  • KYC documents
  • Address proof
  • Identity proof
  • Recently clicked photographs
  • Form 16 or latest Salary Slips
  • Last 6 months bank statements of the salaried accounts
  • Proof of business of up to 5 years if you are self-employed personal and applying for a housing loan

Step 5 – Check the Repayment Terms on your Home Loans

Check if a lender lets you make a prepayment, foreclose the loan, make higher EMI payment, and more without charging any amount to help you repay the loan faster. Some of the lenders also give a 3-month EMI, flexi Home Loan facility and more to help the borrowers manage the repayment of the home as per their needs. Discuss all those aspects with your lenders before signing on the dotted lines.

The Bottom Line

You just went through some of the steps that you should take while embarking on your way to apply for a Housing Loan in the future. Being aware of these steps will help you apply for a housing finance confidently. Happy Home Loan application!

Leave a Reply

Your email address will not be published. Required fields are marked *