Things to Check before Applying for Home Loan

                                      

In India, many banks, financial institutions and housing finance companies provide home loans to the prospective consumers. There is remarkable growth among the customers of the home loan, as mostly people take home finance for purchasing their own home. The person can avail this finance for the purchase of land or plot or commercial property, for construction of the house, for renovation purpose and extension of the house.

The customer should try to avail the home loan through the reputed bank or institutions. However, it requires thorough study at the initial stage and later the customer ripe its fruit, in the form of by getting the best deal for home finance. The person can do it by searching it online and comparing various loan providers. The customer should do comparison in terms of interest rate, loan amount, loan tenure, loan EMI, processing fee and additional charges. The customer should finalize that dealer that provides home finance at low EMI amount, low interest rate, low or free from processing fee, maximum tenure, maximum amount and easy norms. The customer should also check the prepayment charges and hidden charges.

The customer can also negotiate with the bank or financial institution; for availing home finance at low interest rate. This is possible if the customer has strong financial position and excellent credit score. The customer has to submit various documents for showing their financial position and creditworthiness. The customer has to furnish personal details and has to provide residential proof, identity proof and age proof for showing their creditability. The customer has to provide income proof and employment details for showing the person’s financial position and repaying ability.

The banks provide finance only up to 85% of the home value. The banks consider only 40-50% of the net salary while deciding the loan amount. Banks normally give this loan for longer duration, i.e. around 15-20 Yrs and that too at reasonable interest rate, i.e. 10% to 16%. This is because; the home loan is a secured loan. The person has to submit the original property documents after the person get approval for the home loan, as banks then only disburse the amount. The person can avail this finance for various purposes, and that too at a reasonable rate, as there are a lot of lenders who provide home loan and competition is tough among the lenders. Therefore, they provide home finance with lucrative benefits and reasonable interest rate.

The customer should read the documents carefully then only sign the agreement, as customer might have to repent at later stage of life.