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Thinks to take care while applying for a home loan
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Home loanHouse Loan or home loan is much more complex than it appears. If you have already decided to buy a home and now looking for a home loan then this article can be of your use. Today you can find the market flooded with the home loan schemes and lenders. No doubt, these loans have made the painful task of buying costly homes easier but their increased numbers lead to confusion. Before coming to a decision you must compare the interest rates, EMI schemes, processing charges, and repayment period provided by various lenders and banks. Apply for the home loan only after you are completely satisfied  with all the terms and conditions.



Some factors that you should keep in mind while applying for a home loan are:



Your estimate: The first thing to be checked while applying for a loan is the amount that you can apply for. It depends on various factors such as your income, credit rating, current monthly expenses, down payment and the interest rate. Different lenders and banks will suggest you a number of schemes. Listen to them carefully and go for the one that meets all your requirements. A house loan counselor can help you getting over this. He can answer some important questions that might confuse you such as  which loan scheme is beneficial for you, how to save the down payment from your monthly budget, etc.



Your duties and rights: Know your duties that you need to perform while applying a loan and know the rights you will enjoy after your loan is sanctioned from lenders and banks.



Housing Loan Schemes: Talk to different lenders and banks before applying a home loan. Take information from them about the various loan schemes available and choose the best. You can save a lot of money through this exercise as you can prepare the details of various home loan schemes and invest in the best one. Negotiations with the lenders and banks can help you in reducing your interest rate.



Compare Homes: Take help from a real estate agent to choose the best home available as per your specifications. Some builders have tie-ups with the banks and lenders that can make your task easier. While looking for homes, you can negotiate with these real estate agents so as they'll give you some discounts on the total cost of a house. It will help you in reducing your total loan amount.



Check Before Finalizing: Check the condition of the home before signing on the papers. Make sure that the home you are purchasing does not require repair or any other investment. Sign the documents before doing a crosscheck of all the details mentioned in the contract. Read terms and conditions sections  carefully.    



There are certain documents which you require to give along with the loan application form:




  1. Income Proof


  2. Address Proof


  3. Age Proof


  4. Photo ID Proof


  5.  Job Details



While applying for a home loan the costs that you will bear are:



1)  Processing Charges: The fee taken by the lender to apply for the loan.



2)  Documentation Charges: Lenders charge for the documents, they prepare that are required to apply for a loan.



3) EMI: Once your loan is sanctioned, you need to pay equated monthly installment, to the bank. It is basically a loan repayment procedure that combines your loan amount and interest. 



4) Rate of Interest(ROI): It is the interest charged by the lender or bank on your loan amount. You can choose a fixed interest rate or floating interest rate.



5) Penalties: There are various penalties being decided by the lenders and banks in case of every single terms and conditions breakdown. You have to pay a certain amount if during your loan period you did not fulfill any of their requirements.



During your loan repayment period, you can fill the whole loan and interest amount in a single time. You just need to read the closure details of your lender or bank and after verifying all your essentials, they will permit you to do this. Your dream home can be yours with the help of a house loan. House Loan or home loan is much more complex than it appears. If you have already decided to buy a home and now looking for a home loan then this article can be of your use. Today you can find the market flooded with the home loan schemes and lenders. No doubt, these loans have made the painful task of buying costly homes easier but their increased numbers lead to confusion. Before coming to a decision you must compare the interest rates, EMI schemes, processing charges, and repayment period provided by various lenders and banks. Apply for the home loan only after you are completely satisfied  with all the terms and conditions.



Some factors that you should keep in mind while applying for a home loan are:



Your estimate: The first thing to be checked while applying for a loan is the amount that you can apply for. It depends on various factors such as your income, credit rating, current monthly expenses, down payment and the interest rate. Different lenders and banks will suggest you a number of schemes. Listen to them carefully and go for the one that meets all your requirements. A house loan counselor can help you getting over this. He can answer some important questions that might confuse you such as  which loan scheme is beneficial for you, how to save the down payment from your monthly budget, etc.



Your duties and rights: Know your duties that you need to perform while applying a loan and know the rights you will enjoy after your loan is sanctioned from lenders and banks.



Housing Loan Schemes: Talk to different lenders and banks before applying a home loan. Take information from them about the various loan schemes available and choose the best. You can save a lot of money through this exercise as you can prepare the details of various home loan schemes and invest in the best one. Negotiations with the lenders and banks can help you in reducing your interest rate.



Compare Homes: Take help from a real estate agent to choose the best home available as per your specifications. Some builders have tie-ups with the banks and lenders that can make your task easier. While looking for homes, you can negotiate with these real estate agents so as they'll give you some discounts on the total cost of a house. It will help you in reducing your total loan amount.



Check Before Finalizing: Check the condition of the home before signing on the papers. Make sure that the home you are purchasing does not require repair or any other investment. Sign the documents before doing a crosscheck of all the details mentioned in the contract. Read terms and conditions sections  carefully.    



There are certain documents which you require to give along with the loan application form:




  1. Income Proof


  2. Address Proof


  3. Age Proof


  4. Photo ID Proof


  5. Job Details



While applying for a home loan the costs that you will bear are:



1) Processing Charges: The fee taken by the lender to apply for the loan.



2) Documentation Charges: Lenders charge for the documents, they prepare that are required to apply for a loan.



3) EMI: Once your loan is sanctioned, you need to pay equated monthly installment, to the bank. It is basically a loan repayment procedure that combines your loan amount and interest. 



4) Rate of Interest(ROI): It is the interest charged by the lender or bank on your loan amount. You can choose a fixed interest rate or floating interest rate.



5) Penalties: There are various penalties being decided by the lenders and banks in case of every single terms and conditions breakdown. You have to pay a certain amount if during your loan period you did not fulfill any of their requirements.



During your loan repayment period, you can fill the whole loan and interest amount in a single time. You just need to read the closure details of your lender or bank and after verifying all your essentials, they will permit you to do this. Your dream home can be yours with the help of a house loan. 


Posted on: September 9, 2011, 5:45 pm







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