Everyone wants to own his or her home. But because of some financial issues and having to earn just enough let us sit back every time. There are a plethora of things like the location you want to ship to, the size of the home you want, and the types of property you want to own such as a flat, an apartment, or your own home.
All these are common problems for everyone who wants to own a home. Here we have discussed all about availing home loans and what are the most important things that you must know about. You must know the eligibility criteria, the types of home loans you are looking for, the loan amount, what will be the cost of your home loan, and other important things.
Below you will find out what are the top things you need to know the same. So, that you can get a home loan for you and get a clear picture. What you must be prepared for. Let us check all the details we need to know to avail of a home loan.
Does anyone look for a home loan while he/she earns less?
Anyone can apply for a home loan. This depends upon whether you can return the amount within the tenure you have chosen. However, before you apply for a home loan for you. You will be checked whether you are eligible for the home loan or not. Through the eligibility criteria, you will be checked whether you already own a loan and what is your score in paying back the amount.
Below we have discussed the top 06 things you need to know before you avail home loan.
Check your eligibility criteria
You will be first checked for eligibility criteria. These eligibility criteria check whether you will be able to pay the loan amount or not. The loan seeker will be asked for its documents and some questions. This includes your income and repayment capacity, what is your age while you are seeking a home loan, your qualifications, members who depend upon you, your current financial position, your job stability, and your spouse’s income is included too.
Look for a loan first
You do not know whether you are eligible for a loan or not. Therefore, the first thing you must do is to check whether you can qualify for home loans or not. When you approve the loan amount that you are eligible for. You will be able to set your budget to tell the lander for your exact budget. If you find a home at your preferred location and it satisfies you. You can also negotiate for the same and close the deal.
Loans amount you would need
You will find that the lenders provide house loans that range from 75 to 90 percent on the costs of the house you are going to own depending upon your home loan value. Suppose your property is valued at 40 lakhs by your lender for this you will be able to avail of a loan of at least 30 lakhs. You need to know that 80 percent of a home’s costs for loans amount to 75 lakhs and please, remember that this depends upon your home loan eligibility.
There are other ways too. You have the option to include the co-application also. The loan amount can be increased, check the income and consider increasing the loan amount by the bank you are seeking for a loan. If you are looking to include a co-applicant for the same. It could be your adult child, your parents, or your spouse.
What should be your contribution towards the purchase of the property? Here is an example to help you understand availing home loans for you. For example, if the property value is 50 lakh you will be able to get a sanctioned loan amount of around 35 lakh. And in the same, your contribution will be around 15 lakhs. This is how you will be available for the loan you are having for you to buy a home.
What would be your home loan cost?
You can not simply ignore the cost of your home loan. This factor has to take into consideration the time you are assessing your loan suitability to buy a home. The cost of your home loan includes its interest payments, the processing fee of the same, the administrative charges, and the payment penalties you will be paying. You may find some other fee deduction factors while you avail the fee for your home.
You may get zero prepayment charges. If it is an adjustable or floating rate loan. Check if you would be able to convert your loan to a lower rate by having a nominal fee for the same to have for you as you need it. Please, check if there are any hidden charges, you need to have transparency when availing of a home loan. If not, ask the lender to disclose all the information for the fee and the charges for the same loan to avail.
The EMI and Pre-EMI
You have two options for a home loan. One is EMI which stands for equated monthly installments. You need to pay the loan amount including interest on the principal amount.
Pre-EMI option is used when the property is under construction. You get your loans disbursed and you pay it to the developer. In this, you generally pay the interest on the loan amount disbursed. So, this is called pre-EMI interest. If you want to pay the principal amount also. You can do it too and you can start paying EMI.
You will find that the tenure can be a maximum period of 30 years and also depends upon the customer’s eligibility for the loan. It is experienced that longer periods help reduce the EMI burden but increase the payable amount.
Example: If your tenure is 20 years for the home loan amount at least 10 lakh and the interest rate is 10.40 percent. For this, the EMI will be 9,917. If you increase the tenure for your home loan. This will reduce the EMI that you will be paying to the lander.
So, these are the top 06 things you must know before you avail the loan amount.
Availing home loans can be the best option for all those who want to own a home. Therefore are some important factors that one needs to consider before looking for a home loan. Did you know? You can avail a home loan before you shortlist a home in a particular location. You will have 30 years of tenure, you have the option to choose EMI over pre-EMI and more such factors. If you consider them all and then avail a loan. You will be more likely to have the right property for you and plan according to your budget. Follow all the important factors you must know to avail home loan. This thing will help you plan a property that fits you in terms of location, home loan availability, and types of property you are looking for.
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