Sometimes, investing in real estate can be a little tricky. So, if you are a first-time home buyer, the following tips and suggestions should be kept in mind for a hassle-free home buying process.
Are you planning to buy a home for the first time and confused about ‘how to apply for a home loan’ and ‘housing loan eligibility’? If yes, then the following information would help you decide.
Know the essentials and basics of applying for a home loan
For most of us, buying home is a onetime investment! If you don’t plan it properly, it can quickly turn into a financial nightmare and eat away all your investment.
Home loan is a good financial assistance if you are running short of cash, or your savings is not favoring you at the moment. With the help of easy monthly installments, chooses the repayment as per your convenience. Currently, banks offer many financial schemes to help make your dream of purchasing your dream home a reality. But, it is always wise to understand the terms & conditions before applying for a home loan. It saves a lot of effort and time. Always understand the interest rates and the repayment interval period. There can be hidden terms that become tedious for you in the long run, always go through the papers carefully.
Job stability is of utmost importance
When it comes to applying for a home loan, the stability of your job is important as banks consider 40%-50% of the net income as savings or surplus which you can pay for the EMIs. As home loan is a long-term liability, your net salary, expenses, savings and spending patterns are important factors to consider before the loan approval.
Understand the Interest Rate fluctuations
The fixed rate of interest remains the same throughout the whole tenure of the loan but, the floating interest rate keeps on changing depending on the market fluctuations. Therefore, it’s important to know the fees and charges such as loan processing fees, tax, verification charges, conversion fees, etc. before proceeding ahead.
Estimate your EMI using home loan emi calculator
Wondering how much EMI have to pay monthly on your home loan? You can do it easily by using home loan EMI calculator! It helps by giving you a fair understanding of the ratio of the principal amount to the interest due, based on the effect of the tenure and interest rates.
Calculate the tenure of the Home Loan
Home loan tenure is one of the most crucial decisions making factor during the home loan approval process. It has a direct impact on your cost of borrowing and it’s always recommended to keep the loan tenure short so you don’t end up paying more interests.
The road map to the housing loans
The procedure to apply for a home loan is simple. But, it can be daunting, especially if you have never applied for any loan earlier. Though this varies from institute to institute (in India), the overall procedure remains the same. To help you further, here is a detailed home loan process step by step India.
Step 1: Fill the Loan Application Form & Attach The Documents
Step 2: Pay the Processing Fee
Step 3: Discussion with The Bank.
Step 4: Valuation of the Documents.
Step 5: The Sanction/Approval Process.
Step 6: Processing the Offer Letter.
Step 7: Processing the Property Papers followed by a legal check.
Step 8: Processing a technical check & the site estimation.
Step 9: The final loan deal, signing the agreement, & disbursal.