A Step By Step Guide for Obtaining a Home Loan in India Okay, so you’re looking buy your dream home. Chances are that you’ve already found one. What next? How do you go about completing the purchase? If at all this is your first purchase, then there’ll be 100s of questions clouding your mind.How will you ensure the entire home buying process goes as smoothly as possible, especially when the aspect of financing comes to fore? This is when home loans turn out be the saving grace.While it is easier than ever to secure a home loan these days, there can be instances where lack of proper documentation or the requisite paperwork can inordinately delay the process and cause unwarranted financial losses. However, agood know-how about the loan application process can go a long way in ensuring quick and easy loan disbursal. Where Should You Begin? For starters, the first step is to determine how much loan you can afford. This will depend on your income, credits, assets, and your expenses. You can either figure this outby using a loan calculator or take help from a home-loan lender. The other things you need to keep in mind are:
Knowing your rights as a home buyer. Finding a home loan provider. Doing your homework before finalizing a property. Saving money to pay the down payment. Searching forthe available home buying programs. Do a straight comparison between banks and their interest rates.
After you’ve finalized a lender, the next step is to file a formal loan application. The application will require you to provide all the information including family,education, earnings, employment, movable and immovable assets among other things. The requirements may vary depending on the bank you choose but will more or less be the same. The application form you submit has to be supported with relevant documents to validate your credentials. This will help the lender determine yourloan eligibility. Here is a list of the most commonly asked documents when you apply for a home loan.
Income proof Age and identify proof Address proof Employment details Proof of educational qualifications
Details about the property Bank statements Income Certificates IT returns for last two years
Applying for a Loan The sanctioning of your home loan will depend on variety of factors such as repayment capacity, credit history, property cost, etc. As mentioned above, your age, income, qualification, and financial stability will also be closely scrutinized before any bank sanctions your loan. The minimum and maximum amount of loan will also depend upon the property type and location. Eligibility & Documentation
Important Eligibility Criteria
You must be at least 21 years of age (25 in some cases) You must be salaried or self-employed with the requisite income Minimum age of co-applicant if any has to be 18 years You need to evaluatethe impact of your repayment on your monthly expenses
Things To Keep In Mind During The Documentation Process
Do not give out false or incorrect information. Reviewing the terms and conditions while signing the deal is essential.Do not sign a document without reading it carefully. See to it that the document or the letter contains exact rate of interest, processing fees, prepayment charges along with interest-schedule. Consult a lawyer if you face any difficulty in understanding specific clauses.
Processing Fees For Home Loans In India For every home loan application, banks will charge you a processing fee, which isn’t refundable. The processing fee may vary between 0.25% to 0.50% of the loan amount in general. Things To Do Before Acquiring The Loan
Combine your income with that of your spouse, parents, or children to enhance your loan eligibility. The interest rate that banks quote is not necessarily final– there is always room for negotiation. Request banks for a preliminary check of the property you finalized Buy Loan Protector Life Insurance – it willprotect your family from loan liabilities in case of your unfortunate demise.
Author Box IIFL Property Solutions is one of the Indiaâ€™s leading property listing sites involved in real estate market for buying, selling & investing. Our aim is to provide an integrated, one-stop shop covering major locations in the country and become a preferred partner for all types of real estate deals in the country. Visit www.iiflpropertysolutions.com for more information.
IIFL Property Solutions is one of the India’s leading property listing sites involved in real estate market for buying, selling & investing....