Home Loan: What You Ought To Know?

There is no feeling greater than finally settling on your dream home. While you have chosen and put your heart to the perfect abode, you may be now in search of the right home loan. Home or housing loan makes for a good option to fund your purchase. It allows you to avail of the much-needed funds while you make repayments within the loan tenor agreed upon by you and the bank. 

Home loans are widely offered by leading financial organizations. The processing is fairly simple and you must follow all the requisites for smooth loan approval. When armed with the essential documents and clearly understanding the process, you are bound to have a good housing loan experience. 

Here are some things that you ought to know when considering a home loan:

Eligibility criteria – The first thing to do when considering this loan is ensuring that you qualify for one. The lender will assess your information based on several factors that include age, employment, income, credit score, repayment capacity and more. Make sure that you meet these requisites or your application may be denied. 

EMI or Pre-EMI – EMI or Equated Monthly Instalment is the amount that the lender expects you to pay each month. It includes the principal as well as the payable interest divided across the tenure. Pre-EMI is generally allowed on properties that are still under construction. It essentially means paying the interest on the loan amount that is partly, depending on the amount to be paid to the developer. 

Documentation – As part of applying for a home loan, you will be required to fulfill the different document requisites. This will include KYC documents, income proofs, identity proofs, property documents and more. It is important to have these documents duly sorted when applying for a home loan. 

Case of default – When considering a home loan, you must be absolutely sure that you can make the EMI repayments on time. Defaulting with the payments can make lead you to incur a penalty. Thus, ensure that you can afford the cost before entering a home loan agreement. 

A home loan definitely makes for one of the best ways to support your dream of owning a home. Planning your process carefully and being clear on your debt time will ensure that you do not face hurdles while applying for a housing loan.