Buying
a home is a dream of every person. The quickly rising cost of real estate has
caused a lot of tension to all those people who want to buy their dream house.
Home loans are provided by several banks based on the market value. Person can
avail a home loan from several institutions at the lowest interest rates. Home
loan today is easy to acquire. Person can take a home loan for various purposes
such as renovation of home, home improvement loan, rebuild of home and many
more. Person can easily fulfill their all dreams with the help of home loan.Person
can apply for home loan, before choosing the property. Bank approves the loan
on the basis of person repaying capacity.
Unique Features of
house loan:
•
Purpose: Person can get a home loan for several purposes like purchase of the
house from builder / extension of existing house / resale and construction.
•
Loan amount: Person can avail home loan ranging from Rs. 2 Lakhs to Rs. 200
Lakhs. Loan amount depends upon the eligibility criteria, income and repaying
capacity of the person.
•
Security: Home loan is a secured loan in which bank can take collateral as a
security.
Some Tips before
Taking up a Home Loan
Estimate
your expenses and do a detailed research about the property buying process.
Person checks the repaying capacity, before applying for a loan. EMI of home
loan does not exceed more than 40% of the gross monthly income.
Eligibility:
All
banks check the eligibility criteria and repaying capacity of the person. Person
can also take a loan by clubbing the income of spouse/son/father/mother.
Salaried person can easily get a loan if he is earning regular salary. Person
can avail a loan at the lowest interest rates.
Interest rates best
suited:
There
are mainly two types of interest rates provided by various companies.
1.
Fixed Rates
2.
Floating Rates
Fixed
rates mean the person has to give same interest rates for the entire tenure
period. Floating rates means interest rates vary according to the market
fluctuation. Sometimes rate of interest increase and sometimes rate of interest
decreases. Fixed rates are best as compare to the floating rates. Person can
also check the processing fee provided by different banks. Banks also charge
prepayment penalty fee from the person. Almost all sites have their own EMI
calculator that helps people to calculate their loan amount, interest rates and
tenure period.
