Factors to consider when applying for a Home Loan

When you think about buying a house, there are many questions that come into your mind. The most critical question is whereI can arrange the money from. Will I get a loan? What will be rate of interest? Will the instalment be too heavy? Will it be too long a process? How do I select the right property for myself?

In order to give you some solutions to these questions, here are the guidelines that many investors and buyersfollow to ease their journey:

1. Get your eligibility checked so that you can plan your budget

While budgeting for property purchase, it is very important to get their eligibility checked. With this you get a fair idea as to how much amount you can borrow from the Banks/Financial Institutions. The eligibility amount comprises various factors such as your CTC (if salaried), ITR (if self-employed), Credit score, proof of other source of incomeand incase of applying with aco-applicant, similar documents of co-applicant are needed. Applying with a co-applicant increases the loan eligibility because of clubbing of both income.

2. Search for the right property which fulfils your budget and requirements

When one thinks about buying a house, the important factor which comes to our mind is selecting the right property in the right location. A property which has preferably close proximity to educational institutions, hospitals, market, malls and railway stations among others. In short, it needs to have a good connectivity with things related to one’s day to day lives.

3. Property Selection

It is very important to know the currentage of the property. As to how old or new the property is. If the property is very old, it may be economic, but may not have amenities as desired, incase of new a property, it maybe slightly far from main city but will have new amenities. Amenities such as security level, gym, garden are now preferred when selecting a house.

4. Get the title documents verified

Once you have finalised the property, pleasemake sure you get all the legal documents from the builder or from seller from whom you are purchasing the property so that you get complete clarity on title ownership and legal aspects.

5. Applying for Home Loan

Once the above guidelines are followed, you can now search for banks/financial institutions that are offering Home Loans. You have to look for banks which are offering Home Loans at reasonable interest rate, higher eligibility, higher loan amount, reasonable fees and low processing time

Once you have selected the bank you can apply for the Home Loan and choose the tenure of the loan.

Be wise and careful while choosing the right Home Loan for yourself. Take into account all the factors before applying for loan like service quality, maximum eligibility and rate of interest. Have a plan for how you are going to pay the EMI, how will you manage the expenses.

Once you have decided, please go ahead with the application process.

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