All you need to know about home loan

By: Homeloan0 comments

Owning a home is a dream come true for many people. A home loan is one of the sources to fulfil your dream of owning a house. A home loan is a type of loan wherein you borrow money from a bank or a financial institution to buy/build a home. Homeloans4u will provide all the information regarding a home loan.

 

As said earlier, a home loan aids the purchase of a house, and the bank/lending institutions provide loans up to 75-90% of the property cost based on the home loan eligibility calculated. Banks or other financial institutions offer home loans at attractive interest rates and have long repayment tenures. Various loans are available for buying a home, renovating a home, extension of a home, construction loans, and others.  Homeloan4u can help you in securing the best home loan hassle-free.

 

Different types of home loans are available: 

Floating rate loans – the interest rate changes proportionate to changes in the base rate. 

Fixed-rate loan – A fixed rate of interest is charged on the loan amount taken. 

Combination loans offer a part of the loan as fixed and the other part as a floating interest rate. 

 

Home loan eligibility – To be eligible for a home loan, you need to meet certain criteria, including credit score, income, and employment history. Most lenders require a credit score (CIBIL score) of at least 700 above to qualify for a home loan. Banks/ lenders assess a buyer for a home loan based on the income of the buyer and repaying ability.

 

Loan repayment terms: The loan amount you can borrow will depend on various factors, including your income, credit score, and property value. The banks/lenders provide payback terms ranging from 10-30 years. You can select a term that fits your budget plan and financial objectives. Depending on your preferences and level of risk tolerance, you can choose between fixed and variable interest rates to pay the EMI.

 

Documentation: A buyer needs to provide various documents, including identity proof, address proof, income proof, and employment proof. Additionally, the buyer has to submit property documents which include the building plan, the sale deed, property tax receipts, and NOC from the builder or society. 

 

Benefits: A home loan allows you to own a home without having to pay the full amount upfront, which is the biggest benefit. The loan can be repaid over a period of time, which makes it more affordable and manageable. Tax benefits, including deductions on the principal and interest paid on the loan, are another benefit of a home loan.

 

To conclude, a home loan can help you achieve your own house. However, it is important to understand the various types of loans, eligibility criteria, documentation required, loan amount, and repayment terms before applying for a home loan. It is advisable to compare the interest rates and terms offered by different banks/lenders to choose the best deal, and Homeloans4u is here to help you with the best home loan hassle-free.

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