Guidelines for applying home Loan.

                                 

Buying a house is the most significant factor for families in India, middle and upper-middle class. Importantly, purchasing a home is not a burger, however, people in India runs a deep research and planning for attempting a home loan. The article proves to be supportive for those seeking for it, in order to make one understand better, one should know all the tasks and performs involved in the process of home loan.

Financial Institutions/ Banks is the best source to avail a loan for your desired home. However, selection of the property to purchase must be done before applying for it.

Banks or financial institution needs borrowers to move forward their business. People running with existing mortgage loans can consider to a new lender if they cannot sets with a low interest rates with the existing lenders.

Banks here in India are remarkably reluctant to finance more than 15 years old residential property, which, the previous owner has resold it many times.

Moreover, if one would like to buy an under construction property is not at all listed in the bank’s preapproved loans, one may certainly experience enormous amount of problems to avail home loan for that property. Most of the banks or housing finance institution have links ups with a number of builders. The potential home buyers can surely avail home loans, at low interest rate and financial support up to 80% of the total property market value.

The current economic situation is that all potential home loan customers only prefer the floating rate than the fixed rate. One of the only reasons for this situation is that because the interest rate on floating is 2% cheaper than the fixed interest rate, so is the reason borrowers find it more suitable for them.

However, risk factor is always involved to go for them as the fluctuation in floating rate is subject to market conditions, during changes of the interest rate.

However, 90% home loan-seekers choose the floating rate of interest. Are the reason, banks cannot follow the dramatic way of increasing interest rate on floating rate of interest. As a home loan client, one should be alert to go through the previous record of benchmark rates of your bank; to understand whether or not your bank passes on the benefit of reduced rates to the loan seekers.