Never wait, when it comes to investing in real estate! Once you’re through with proper planning, take the plunge as it is the only sure investment. And when lending institutions today offer easy home loans, you have no reason to delay except till you’re thoroughly aware of what you can expect down the housing loan route.
Given below are a few things you should know about home loans before you avail one.
Types of Home Loans
Yes, lending institutions offer home loans under different heads of interest rates, namely – fixed, floating, or a combination of both. Under the adjustable or floating home loan type, any change in the lender’s benchmark rate will proportionately affect your home loan interest rates. Under the fixed type, the home loan rate is set at the time of loan approval and is applicable throughout the tenure. When you choose a combination of the two, part of your home loan will be charged at a floating rate and part at a fixed rate.
Home Loan Eligibility Criteria
Once you have educated yourself on various types of home loan options available, the next thing is to ensure that you qualify for a housing loan. Several factors such as your age, the stability of income, CIBIL or credit score, existing debt obligations, condition of the property you desire to purchase, etc. play a key role in determining your home loan eligibility. Lenders will only sanction your home loan if they are convinced of your repayment capacity.
You can use easy online tools such as a home loan eligibility calculator to find out your eligibility beforehand.
Home First or Loan First?
Your natural inclination may be to select your home and then apply for home loan. However, it is recommended that you do the opposite! Get your housing loan pre-approved and then embark on your home search. Doing this will make your search more focused.
Moreover, you can even check for properties that are approved by your lender in your preferred location. Doing so can help with negotiations and closing deals faster.
Home Loan Documentation
Meeting home loan eligibility criteria is just half of the equation, the other half being the submission of relevant documents. For housing loan approval, the following primary documents need to be presented for verification –
- Age proof
- Photo identity proof
- Address proof
- Income proof
- Existing loan details
- Processing fee cheque
Make sure to go through your lender’s documentation requirements carefully before you apply for home loan.
Home Loan EMI Calculator
When it comes to buying a house with the help of a home loan, planning will ensure that your repayment journey is an easy and comfortable one. Lending institutions offer useful online tools such as the home loan EMI calculator for this purpose.
With the help of this calculator, you can quickly find out your home loan EMIs and plan your finances accordingly. To use an EMI calculator for home loan, you need only three inputs – principal loan amount, home loan interest rate, and the loan tenure.
Now that you are equipped with the right knowledge on home loan, you can avail one confidently. Use home loan calculators to determine your eligibility and EMIs and apply for your home loan online. Get easy home loans with high eligibility, low home loan rates, and hassle-free application processing.