Having an own shelter is everyone’s dream. We might not be rich enough to afford all the luxuries of this world. But sleeping under the roof that is made by yourself brings more joy and bliss. While thinking about having an own house, money becomes the first and foremost factor that need to be met.
In fact many people couldn’t make their dream come true because they can’t afford the expenditure of building a house. Depending upon home loans is basically a financial support solution for this. Now it has become easier to get loans within few clicks. We don’t have to hassle around for funds to build our own house.
Home loans helps people to borrow fund from banks or other financial institutions in order to purchase a land or build a house on our existing property. It comes up with pre-defined interest rates and repayment tenure. The borrower can pay back the loan amount through easy EMI options.
But before approaching a financial institution to apply for a loan there are certain things that we have to know. At first we have to understand the real purpose behind applying for a loan. For this we should have a minimal knowledge about the types of home loans that are available.
They are divided into many such as Home purchase loan, Home improvement loan, Home construction loan, Land purchase loan, Home extension loan and Joint home loan. There are certain documents that need to be submitted in order to become eligible to get a home loan. These documents are primarily divided into two categories.
First one is the documents that provides the details about our income and our potential to repay the loan decently. The institution will also check your CIBIL Score before approving the loan. The closer your score is to 900, the better your credit rating is. The second category are the legal documents of the property.
One of the main factor that we have to consider while choosing a loan is it’s interest rate. Different institutions have different interest rates and EMI options. We have to make a clear understanding about this and choose the one wisely that suits to our financial stability. When we start paying off the dues, a major part of our money goes as the interest for a long term.
House loans becomes a main factor that gulps our income and so we have to select the one that which create lesser expenditure. Depending upon the potential of the financial institution that we approached the loan amount could be a minimum of 50,000₹ to a maximum of 5 Crores with flexible EMI options to pay back within a tenure of up to 30 years.
However the lender have the right to retain its ownership of the property till the borrowed amount is cleared with pre-defined interest. When the dues left unpaid the lender can recover the outstanding loan amount by the sale of property in question.
So it is important to choose a plan that suits to our financial stability and potential.
Most of the people dream of building a residence by taking higher loan amounts in order to boast among people around them. In result they find it hard to repay the loan amount and leads a miserable life of anxiety and stress. First we have to understand about why we need a house. Not having a peaceful life inside a luxurious house is just a waste of money and effort we paid upon.
