Home Loan Fundamentals

What is a home loan?

Home Loan is a loan, or subsidy, that you take out for the purpose of buying or renewing your home. The Home Loan program makes it easier, and more affordable, to make or buy the home of your dreams. Many banks and many types of financial institutions offer the public a home loan at very low interest rates. Whether you are aiming to buy a house or an apartment, or to build one, a home loan can be an easy path to achieving your dream.

How much can I get?

The actual amount of loans you are eligible for, or can get, varies, depending on many factors such as your ability to repay, your age, your family income, the number of dependents you have, and so on. The amount of the loan will also depend on the term of the loan and the current interest rate. Tenure is the amount of time you are given to repay a loan. Many institutions and banks will extend a mortgage to buy a house or an apartment, to renovate an existing home, or to extend or renovate an existing home. However, in the case of a second purchase, when you already have one house or apartment, most banks will have a different policy and set of rules, so be sure to ask the appropriate questions and get explanations about certain details in your bank beforehand. he signs.

Home loan process

There is a process for claiming a home loan, depending in part on your need for advertising information, and in part on internal banking processes. The first step is to apply to a few banks and financial institutions, and then begin the process of comparing prices and duration. (Or you can compare prices on our sites). Once you have decided on the bank, the steps are as follows.

· Completing the relevant applications and submitting the required documents.

· Adjudication of loans from a bank or financial institution depending on age, payment capacity, and value of assets.

· Loan repayment, transferring the value of the home loan to you by check.

There will be a required document before the bank can authorize or disburse a mortgage. The information in these documents will determine whether or not you will be given a loan, the interest rate you will be charged, and the time allowed.

These documents include:

· Application form, completed correctly and truthfully

· Passport size photographs of the applicant and the applicant (if any)

· Record your payment record of any outstanding debts

· Photo ID

· Proof of age

· Proof of accommodation

· Verification of signature

· A copy of the official plan of the house / apartment

· Loan loan letter

· Check money for processing

· Additional documentation required may include

· Bank statement of salary account for 6 months (personal / current account if the business owner)

· Income tax return for up to three years

· TDS certificate (employees)

· A copy of the identity document issued by the company

· Salary slip and Form 16 for three months (employee)

Home loan tips

· Do your homework before applying for a Home Loan.

· Find out how much you can afford to pay as EMI.

· Look at the bank rates to get a solid idea of ​​how much the total loan may add and look at the properties in that brackets.

· Different banks and financial institutions offer different interest rates on mortgage loans, so compare prices and processing costs before deciding on a particular bank.

· Take your time, don't rush. Discuss all aspects of your loan with the bank, and get complete information about terms, conditions, exemptions and more.

· When you receive the form, as well as the loan letter, make sure you read all the documents and ask for clarification on any point you do not understand.