How To Get A Home Loan: A Comprehensive Guide


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In today’s financial world, several financial organisations can assist you in obtaining a Home Loan. Obtaining a House Loan is a straightforward process. But before you go further with the loan procedure, you should know about Housing Loan eligibility. Because an extended financial commitment costs you money. Therefore, finding a suitable loan provider and choosing the best loan scheme is crucial.

Key Factors to Shortlist Loan Providers 

– Lower rate of interest

Compared to other loan options, the interest rate on a Home Loan is significantly cheaper. Choose a provider with an affordable interest rate.

– Long repayment tenure

If you are wondering how to get a Home Loan and repay it on time, you should know that it has an extended repayment period. Compare the providers and choose the ones offering a tenure of up to 25 to 30 years. It is because borrowing a sizable loan amount is required to buy a property. Therefore, the monthly EMIs will be lower if the loan amount and related interest are spread out over a longer term.

– Balance transfer feature

For various factors, including the interest rate, service fees, level of customer care, and others, you can switch your Home Loan from one provider to another. See if your shortlisted loan providers have this feature or not.

– No prepayment fines

When you take up a floating-rate Home Loan, you can pay off the loan early anytime you have a lump sum available without incurring any prepayment penalties. It will allow you to pay off your Home Loan much before the chosen loan term. Check if your provider gives you the option of prepayment with or without any additional charge. 

– Due diligence check

When you purchase a home through a bank, the bank will carefully examine the property from a legal perspective and assess whether all the paperwork provided is accurate.

A Few Things to Note before getting a Home Loan

  • Paperwork: To complete your Home Loan smoothly, you must have all the necessary paperwork and proof. It includes KYC paperwork, income records, and property documents.
  • Eligibility: Make sure you are eligible for a Home Loan. Alternatively, you can use a Housing Loan eligibility calculator. Using this, determine how much of a loan you qualify for based on your income and ability to repay.
  • Types of Home Loans: These secured loans come in two basic categories: fixed and floating rates. The bank’s MCLR is connected to the variable rate loans, and as a result, the actual interest rate that is charged may vary. At the same time, the fixed rate loan has a set rate for the duration of the loan.
  • EMI: Banks provide various EMI solutions to suit your needs. As the down payment amount rises, the EMI payment burden lowers. The EMI calculator for a Home Loan lets you figure out your monthly payments.
  • Repayment tenure: The period you have to repay the approved loan is the repayment period. Depending on your loan eligibility, a Home Loan tenure is decided. If you are near your retirement years, a longer repayment period won’t be provided.
  • Home Loan pre-approval: Getting your Home Loan pre-approved before choosing a property is wise. This can help you adjust your spending plan and narrow your housing options.

Eligibility Criteria for a Home Loan

The usual eligibility criteria for a Home Loan are as follows –

AgeAt least 21 years and a maximum of 60 years.
IncomeRs. 25,000
Loan AmountUp to 90% value of the property
Loan TenureUp to 20 years (varies depending on the profile)
Rate of InterestFrom 8.30%
NationalityIndian
Processing Fees1.25% of the loan amount
Prepayment ChargesNil

Conclusion

Thanks to the different mediums that are now available with the development of technology, obtaining a Home Loan has become more straightforward than it was previously. To apply for a Home Loan, one can go to the bank branch, ask about the Housing Loan eligibility and other possibilities, or do so online. The bank will request the necessary documentation SEO in Dubai when you proceed with the application. Then, the banks decide whether or not to grant the loan after examining and validating all the documents.


John Robert

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