Five Easy Steps for Home loan purchase

Posted by Shreekant Rao on January 11th, 2017

A housing finance is not like purchasing any apparel or gadgets online. A home loan requires long-term commitment and healthy relationship with the finance company or bank. There are interest rates and other charges associated with it. Buying a dream home can turn into a nightmare if due diligence is not being given to the terms and conditions. Housing finance companies or banks agents are mainly the sales agents and not the real financial advisors. Therefore, before availing a suitable housing loan you should consult your financial expert and discuss with him or her every parameter of housing finance. Even a small reduction in interest rate can help you save from making a big hole in your pockets.

It is difficult for the first-time buyer applicants of housing loan and seeking right solicitation is important. Before, going for the purchase directly consult your friends, family members or compare quotes online.

The article discusses few steps for home loan enlighten:


A different individual has different loan eligibility. It is crucial to determine one’s housing loan eligibility as it's an effective way to start the housing finance application process. Once you know the amount that you qualify for you can safely arrive at a loan amount you can borrow from the banks or housing finance companies. Ideally, your housing loan EMI’s will consume 30-40 % of your take home salary so accordingly you will be qualified for a loan. Understanding and choosing a right monthly installment makes sure you don’t end up with an empty wallet at the end of the month or fall short of expenses.


There are lots of banks and housing finance companies in India. Just visiting the very first banks or finance company and going for home loan application is wrong.  You should compare online quotes in terms of loan eligibility, interest rates applicable, processing, stamp duty & registration charges, loan tenure, repayment options etc. and then go for suitable purchase.


Documentation is again a tedious and time-consuming process. Many times your application gets delayed due to documentation hassles. Therefore, get aware of the exact documents required for loan application and get them ready before you apply foe loan. Insists on handing over all documents on the same day to the representative. It will avoid to and fro later and also speed up the application process.


While applying for home loan, the various charges levied upon matter the most. These include documentation, stamp duty & registration, legal and credit check charges, etc. Ideally, bank or housing finance company charge between 0.25% to 0.5% of the loan amount or capped to a maximum value. Keep in mind that they charge the amount irrespective of loan application is sanctioned or not.

Tax benefits

Under Section 80C, interest amount paid to the bank or companies can be claimed for exemption from tax benefits. You can claim up to 1.5 lakhs for income tax exempt. This will help you save additional money for future installments making it easier on your pockets in the long-run.

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Shreekant Rao

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Shreekant Rao
Joined: November 3rd, 2016
Articles Posted: 41

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