Gone are the days of the traditional way to make a house yours by spending your money from personal savings for Home loan tips. Things have changed, and there are many options available for first-time homebuyers. Taking a home loan is one of the best alternative options to make a house yours.
There are many questions unanswered in their minds for those taking a home loan(first time). Taking a home loan is convenient to purchase your home without worrying about paying the entire amount in a lump sum. Those taking a home loan for the first time are not aware of the procedures. Through this article, we are highlighting a few things who want to avail the service of a home loan for the first time. You can also take Loan for commercial properties like on Bhutani Cyberthum.
Tips for First Time Buyers
If you’re one of the millennials, you’d know that owning a home has long since been the quintessential Indian dream. But in the 21st century, where an entire world’s economy hinges on a volatile stock market, buying one doesn’t come easy. If you are a first-time Home loan tips buyer, in particular, you need to be equipped with the know-how of how a home loan works in the current scenario.
While the internet is already rife with plenty of guides to help you through a home loan process, the ones available simply aren’t effective enough as they don’t cover all the bases. However, you can count on this page to give you all the information you need. From the mundane to the magnificent, you will learn all that you need to about a home loan.
So, let’s begin with the essentials.
It’s better to save money.
It is essential to save up enough money even though you plan to take a home loan. Make sure that your income structure is consistent enough to let you accommodate the home loan EMIs” you are planning to take for your first home.Also for the commercial property
Look high and Low
Taking a home loan requires you to do an extensive search and let you know the different options available with multiple banks. The features like interest rates, coupled with time duration, processing charges and foreclosure charges charged by the banks is to be considered. Hence, you should go thoroughly and search for the most suitable one for you.
Explore all the possibilities
You can avail of a home loan from different sources; the most common source adopted by many is from the banks or can take the facility of housing finance companies. Each head has its terms and conditions. For you to find the best one requires a study regarding the same.
Batted the breeze
There is a set procedure to take a home loan, and it requires many personal documents and income proof. It’sIt’s better that you keep the records handy before taking a home loan to facilitate the whole process without any hassles. The documents(in the loan agreement) should be cross-checked.
Take on too much
The exciting offers you get from multiple banks sometimes leave you in a difficult position. You should avoid taking out too many loans. Don’t get confused with the attractive interest rates with longer repayment time duration. It is advisable to make prepayments (every quarter or every six months).
Ask someone for help.
It is an excellent practice to ask someone (who has already taken out a home loan) for help. In turn, this gives you more information on the entire process while also helping you not to commit any mistakes during the process.
Home Loan and Its Basic Types:
There are several different types of home loans, depending on the purpose they are used for. Some of the most commonly seen ones are:
Home Purchase Loans
Home purchase loans are, by far, the most popular types of home loans in India. This is where an individual uses the disbursed loan amount to purchase a newly built apartment or an already constructed property. Nearly every bank and financial institution in India offers this type of loan. Each of the banks, however, follow their own interest rate policy and loan terms.
Land Purchase Loans
Land purchase Home loan tips, as the name suggests, are used to fund the purchase of land where an individual is planning to construct their home. Lenders usually provide a maximum of 85%-90% of its cost, while the other 15% should be put together by the applicant.
All the major banks and NBFCs like HDFC Bank, Axis Bank, Punjab National Bank, and DHFL among many other offer land purchase loans, albeit under a different name.
Home Construction Loans
This type of loan is available for individuals who are planning to build a house on their own land. The application and approval process to avail this loan though is a little tricky. Take, for example, if the individual wants the cost of land to be included as a component for the total price of the house, they must have bought the property within the previous year.
Again, every major bank in India like HDFC, Axis, State Bank of India, Canara Bank, UCO Bank et al offer this type of loan.
Home Improvement Loans
Home improvement loans are taken by individuals who are unable to mobilize enough funds to renovate the house they are living in. The maximum home improvement loan an individual is eligible for depends entirely on their debt-to-income ratio and their financial standing.
What Is The Eligibility Criteria for a Home Loan?
All banks and NBFCs in India have their own eligibility criteria a prospective home loan buyer has to meet. Here’s a list of the primary requirements.
- You need to be aged between 18 and 60 years.
- Need to be a salaried or a self-employed individual with a steady income.
- You need to earn more than the minimum income quoted by the banks.
These three aspects qualify you for a loan. However, there are a few other factors on which your application hinges. They are:
- Your monthly income: When you apply for a Home loan tips with any lender. You need to prove to them that you have at least 50% of your income ready to serve the EMIs.
- Other loan commitments: Having a high monthly income doesn’t necessarily guarantee you a home loan. Also, if you are in the pursuit of repaying any other loans, the total loan amount. You’ll be eligible for will significantly decrease. This is why you need to make sure to clear every other loan commitment before applying for a Home loan tips.
- Eligibility for a commercial property like Orion One32 is one of the best commercial projects in Noida
- Your down payment capability: A lender never gives out the entire loan amount you’ve applied for. In fact, the most they will give you is 80% of the value of the property. The other 20% of funds should be mobilized by you. If you are applying for a new home loan, you should make sure to have the down payment fund ready so that your application doesn’t get rejected.