Few things to keep in mind for first time apply for home loan

1. Few things to keep in mind for first time apply for home loan Taking a home is once in a lifetime decision. However, the spiralling process of the property has only added to your worries. You have to look for proper finances to fund your dream home. Thanks to the current market scenario wherein leading private housing finance companies and banks offer people home loans with lucrative interest rates deals. Lenders have cut down on interest rates and it’s now turned in a buyer’s market and also the realty prices have taken a dip. However, it is not an easy task as you have to compare interest rates across different lenders, the processing fee, loan disbursal value, understand the terms and conditions, and the jargons associated with the housing loans. As a first time home buyers, there are certain basic factors you have to understand before you apply for home loan. It ensures a smooth and easy housing loan processing. The right housing finance will smoothen the road towards your dream home. It is important you stay clear with basics. The types of home loans Well, you can avail loan for varied purposes such as to buy a new home, resale property, home renovations or extensions, short-term bridge loans, rural housing finance, plot loans, top up loans, etc. It's like you name it and the lending firms have it for your housing solutions. Who can apply for home loan? Any Indian national or even NRI individual can apply for home loan. You may also get pre-qualified for a home loan if you are valued, customers. Generally, lenders offer a pre-approved home loan who's credit history is exceptionally well and they feel he or she can be a potential customer to pitch for the loan. With pre-approved home loans, you know what are your exact eligibility and shortlist properties based on the loan amount. Builders place a trust in you and know that you're serious about buying the property as well. What is the loan amount I can get? Any banks or housing finance company will sanction up to 80% of the total loan amount, and the remaining 20% contribution should be borne out by you. In certain cases, if you hold good relationships with lenders, show your spouse/parents income you can qualify for higher loan eligible up to 90% of the property value. However, it would be wise to accumulate some funds right from 1-2 years before you apply for home loan. With more down payments you will have to avail lesser money and lenders will be keen on offering some great deal. What are the eligibility criteria to sanction the home loans? Lenders will mainly check the creditworthiness of the borrowers. Other than this some factors that would decide your loan eligibility is your age, property age, employment, qualification, work experience, income source, job or business stability, additional income source of parents/spouse, debts, credit history, etc. Apart from this, there are basic KYC norms such as your PAN details. address proof like Aadhar Card, Voter ID, Driving licenses, income proof like a bank statement, salary slip, Income tax return file, etc.

2. What's the interest rate on housing loan? Most lenders offer attractive interest rate deals between 9-13% on your home loan. With a good income source, additional income source and a credit score of 750+ you can negotiate with the lenders for some great interest rate deal on your housing loan.