Jun 11, 2012

Home Loans – A way to own Home


                                     

Home loans are given on the basis of the market cost of the house/home/land/property. The valuation of the home/property/land/house is done by the bank itself or through registration price of the house or property. Home loan is one of the promising loans that most of the consumers demand. However, the process of home loan can turn out to be tedious once the customer starts searching about it. The most tedious work is to decide upon the interest rate, i.e. it should be fixed, floating or teaser and it becomes more complex as each bank has its own interest rate offerings.

 Taking a home loan is one time decision, but its impact on the person financial position is for a longer time. Therefore, the person should look around before finalizing any home loan provider, as there are chances that customer  do mistake while opting the home loan that does not suit his budget. The areas where customer should look for home loan are: eligibility, additional charges, processing fees, interest rate, loan tenure, loan amount, documentation, penalties, etc.

 One can avail home loan in two forms fixed rate home loan or floating rate home loan. This is the most crucial factor while deciding upon the home loan, as it affects the person financial position in the long run. Though, the person can get lucrative interest rates by comparing various lenders from each other. Most of The banks provide loan at 10% to 16% depending upon person profile & loan requirement. Mostly banks provide home loan at a floating rate of interest and banks that provide loan at a fixed rate; give clause that they can revise the loan rate anytime during the tenure of the loan.

 In home loan one should not fix the lender, as each lender has its own unique offer and might the person get a home loan from other lender that suits his requirements. For availing home loan, the person has to follow various steps, i.e. they have to submit various documents. Some documents that are commonly asked by various banks are:
1.      Identity Proof (driving license/passport copy/pan card/Voter ID card)
2.      Age Proof (pan card/passport copy/birth certificate)
3.      Residence Proof (Voter ID card/ passbook/ration card/passport copy)
4.      Income proof; for salaried: Form 16 & latest salary slips and for self employed: ITR & balance sheet (CA certified)
5.      Latest bank statement of last 6 months
6.      Property document


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