Step by Step Guide to Home Loan Process in Indiaby Arwind Sharma Finance Advisor
As the real estate segment in India is all set to grow by almost 30% over the next 10 years, now is the perfect time to buy a home. Not only will your property’s worth increase in the long run, but you can also make use of government initiatives such as RERA as well as the low Home Loan interest rates to make buying your own property easier. To get started, look for lenders who offer feature-rich Home Loan schemes to make raising finance more affordable and convenient.
Follow this Home Loan process to finance your home purchase in India.
Calculate and Improve your Credit Score in Advance
A good credit score is the primary qualification you need to have when borrowing any loan. Since it is an important criterion that has a direct impact on approval, it is important for you to calculate your credit score in advance before applying for a Home Loan. In cases where you have a poor credit score, first take all the appropriate measures to improve your score and then apply for a Home Loan. This will ensure that your application is met with approval.
Research the Market to Select a Right Lender with the Best Loan
The market for Home Loans is expansive and so, there are several lenders that you can choose from. As a result, it is important that you do your due diligence and evaluate the various loan providers and their Home Loans. This will help you arrive at the best lender and select the right Home Loan as per your needs. Like Bajaj Finserv offers Home Loans that aren’t just affordable, but also rich in features. For instance, apart from a high loan amount, you can avail a Flexi Hybrid facility, long tenor of up to 20 years, 3 EMI holiday, top-up loan and make prepayments without any charge.
Ensure you Qualify for the Home Loan
Every lender has Home Loan eligibility that you need to match in order to have your loan approved. You should carefully select a lender who has criteria that you can meet without any hassle. To make the process simpler, make use of the Home Loan eligibility calculator. This will let you know if you qualify and the amount that you can avail.
Select the Property Based on Your Budget, Needs and Value:
Properties vary based on size, location and value. Before you borrow a Home Loan, it is important to ensure that you select the right property. Working backwards, first determine the amount that you can take as a Home Loan, based on the maximum amount that you can pay as EMI. Use a Home Loan EMI calculator to check your EMIs, arrive at the principal that you will be able to borrow, and then zero in on a property accordingly. Also ensure that the property you finalise is in a good locality, backed by a reputable builder and is well connected to markets, schools, hospitals, etc. Not only will ensure that you are able to lead a comfortable life, but it will also increase the home’s resale value.
Set Aside Funds for Down Payment, Stamp Duty and Registration
When you are borrowing a Home Loan to purchase a home, you need to set aside funds not only for down payment and repayment, but also for other costs of home buying like stamp duty and registration, buying a parking space, paying society maintenance, etc. So, ensure that you arrange finances for these charges before you apply.
Check the Related Fees and Charges, and Decide on the Type of Interest
Depending on your lender, you will have to pay additional charges apart from the interest such as the processing fees, interest statement fees, foreclosure charges and prepayment charges. It is always important to select a lender who levies minimal additional charges and plan for their payment in advance, so that they don’t come as a shock later on. Apart from this, you should also consider the type of interest rate that suits you, be it floating or fixed.
Complete the Application Procedure Online or Offline
The last step is to apply for the Home Loan. You can do so online, or offline based on what you find convenient. Applying online will help you save time, but if you aren’t comfortable with this option, you can apply at the lender’s branch, give a missed call or send an SMS to get the process started.
With the right Home Loan by your side, buying the home of your dreams is a smooth process. So, if you have always dreamt of being a homeowner, now is the best time to work towards turning it into reality.
Created on Jul 3rd 2018 08:09. Viewed 420 times.