It’s natural for any adult individual to aspire a home of your own! And to buy the same, you do need a little help in terms of financial sources. Not everyone can purchase a home worth millions by just signing a cheque for it! Most of the common working individuals opt for borrowing a certain amount of sum to help them buy a new house. And in the varied options available, a bank is the best one, as it is all official and the most reliable source of borrowing heavy sums for any cause! But, when a bank provides you with the loan, it obviously involves lots of formal procedures to be managed to get that sum.
From applying for a home loan till you pay the last EMI, there go a lot of complexities and formalities in buying a house. So, If you have decided to borrow a sum as a home loan from a bank, you have to be very much aware of all these procedures. There can be tens of terms and conditions that have to be followed and many steps to be climbed in order to win the trust of the bank and get the loan amount drawn in your name. Even ignoring one of these aspects can blow your deal and you’ll have to start all over it again!
Important aspects to check when taking a home loan!
First and foremost, understand that a home loan isn’t just for buying a new property. Even if you want to revamp your old house, the bank would be happy to pay. But always contact the bank in which you have an active bank account. This is essential because you already know the terms of working of the bank and also your previous banking history comes in your favour too when getting the loan. Apart from these, some important matters are to be thought of when taking a home loan. Keep reading to know them:
- Check your eligibility — Before applying for a loan, always access your eligibility and this is determined by your repaying capacity. It totally depends on your and your spouse’s monthly income, your expenditure, savings and surplus income. The bank checks all these details and calculates your loan amount accordingly. Generally, a bank requires around 50% income on a monthly basis to count as a surplus income. In short, the higher you earn the higher loan amount you are eligible to take!
- The amount you should borrow — Most of the times, if you are buying a place through a home loan, you are required to pay around ten or twenty percent as your down payment amount. The rest can be arranged through the loans. But you should try paying more during the down payment time so that the rest of the EMI amount is less stressful. Even though the lending calculator shows you more amount to borrow, you can borrow less than the calculated one if you are ready with more money to pay upfront. To calculate the accurate amount, check from borrowing power calculator from Your Mobile Broker who is ready to help you to deal with all kinds of loan and taxes calculations with the best results instantly.
- The necessity of a co- applicant— Most of the banks don’t sanction a loan without a co-applicant. You can make any person of your choice — your business partner, your family member — as your co-applicant and submit proofs and formal documents of both when applying for the loan.
- The documents you may need — Most of the forms from the bank give you a detailed list of the documents that would be required for the application. But most probably, it’s your photographs, your residence proof, your bank statement copy, your citizenship proof, your identity proof, your present work identity card, salary statement, tax paying slips, etc.
- Interest rates — The interest rates for home loans can be flexible and you may get options to choose from. Some banks even have this zero interest rates, but in those, the down payment stays more. You can also keep on giving prepayment of the total amount as and when it’s possible for you. This would ultimately shorten your EMI cycle for the repayment.
When you are thorough with all these sides of formalities from your side, the bank will send officials to check on the property. And if both you and the property are reliable and worth lending the amount, the bank grants the loan! This makes your purchasing a property an easier task and you can keep repaying the borrowed amount in the course of time according to your convenience.
January 6, 2017
February 19, 2017