What should everyone know about home loans?

Posted by Shubham Housing Development Finance Company Ltd. on September 29th, 2022

A home loan is a tool that helps you buy a home at its current price, rather than waiting until you have enough savings and then buying at a simple multiple of the home's current price.

Peace Of Mind

Peace of mind cannot be measured. And there are very few people who would rather live in a rented apartment their whole life. What happens if there is no income after retirement? Why invite unnecessary rent burdens after retirement? And that's why most people buy their own property during their working life. For many people, paying the EMI means owning the house at the end of the loan term, while paying the rent means having nothing at the end of the loan term.

Before you start a home loan, you should find out how much you make and how much the bank can lend on that basis. Your ability to get a housing loan depends on your ability to pay it back. It depends on your monthly income, family expenses, income, assets, liabilities, and income stability.

What is the maximum home loan you can take out?

• A deposit of 10-20 percent of the value of the house or apartment must be paid. This is your personal contribution.

• After that, loans are available for up to 80-90 percent of the real estate value. It also includes fees such as registration, transfer, and stamp duty.

• Even if the lending institution gives you a larger amount as a home loan, you don't have to borrow the entire amount.

• When buying property, you must pay the maximum down payment to keep your credit load as low as possible. Keep in mind that home lenders will charge you a high home loan interest rate over a long period of time.

What documents are required?

In addition, to Know Your Customer (KYC) documents and income, to build a house on a property you own, you must provide a lender with documents proving ownership of your property. This property can also be the property or property granted by the building authority. You can also get a loan against a property. However, the lease must be settled for a longer period of time. You must also submit a permit certificate for the property.

In addition to property documents, plans and plans for the planned house must be submitted. You must also submit an estimate of the value of the building certified by the architect or structural engineer. Based on these documents, if the lender is satisfied with your solvency and the fees presented, they will approve your home loan on terms.