Get Better Deal on Home Loan with Shubham

Posted by Shubham Housing Development Finance Company Ltd. on January 20th, 2022

Before starting the process of home loans, assess how much you earn and how much loan banks can give according to that. Your ability to take a home loan depends on your ability to repay it. It depends on your monthly income, expenses and family\'s income, assets, liabilities, stability in income.

What is the maximum home loan you can take?

• A down payment of 10 -20 percent of the cost of a house or flat has to be made. This is your own contribution.
• After this, the loan is available up to 80-90 percent of the value of the property. It also includes charges like registration, transfer, and stamp duty.
• Even if the lending institution approves you of a higher amount as a home loan, it is not necessary that you take the entire amount as a loan.
• While buying a property, you should make a maximum down payment so that the loan burden is minimal. Keep in mind that the home loan lender charges you a lot of interest over a long period of time.

Is it necessary to apply for a home loan?

Yes, co-applicant is necessary in most cases. If the property is in the name of two people, then in that case it is necessary for both of them to participate in the home loan as well. If you are the owner of the property, then any person from your family can be the applicant.

What are the documents required for home loan approval?

A checklist of documents to be attached is included in the home loan application form itself. Along with this, you have to put a photo. From legal documents to buy the house, the bank has to give you the salary slip (office attested and self-attested) along with the identity and residence proof and the bank statement for the last six months along with Form 16 or Income Tax Return.

Some home loans institutions also ask for life insurance policies, share papers, NSCs, mutual fund units, bank deposits, or other investment papers as pledges.

What is Home Loan Sanction and Issuance?

• According to the papers given by you, the banks decide whether to give you the loan or not. The amount of a home loans also depends on this.
• If the bank has accepted your application and has decided to grant a home loan accordingly, then the sanction letter contains information about the home loan amount, tenure and interest rates, etc. It also contains information about the terms and conditions of the loan against property.
• When the loan amount is actually in your hands, it is called disbursement. This actually happens after the technical, legal, and valuation-related process is completed.
• You can decide to take a loan less than the amount in the sanction letter. At the time of getting the loan, you have to provide an allotment letter, photocopy of the title deed, sale agreement, and encumbrance certificate.
• From the day the loan amount arrived in your hand, interest is charged on it.

How will the home loan amount come into your hands?

A home loans is given to you in a lump sum or in instalment. There can be a maximum of three instalments in this. In the case of indoor construction property, the loan amount is given according to the progress of construction.

In case of such a property, you can enter into this agreement with the lending bank where the home loan amount will be given to the builder as per the construction. In the case of ready-to-move properties, the loan amount can be availed in a lump sum.