Tips Before Applying Home Loan in India by Amit Kumar

Tips Before Applying Home Loan in India

Most of us get to build their homes once in a lifetime thanks to the ever-rising property prices and the staggering interest rates. For a home loan, a decision made in a hurry can lead to disastrous consequences, like a huge debt in your life. Therefore, it is extremely important to do a little bit of research yourself and have a good know of how things work before actually signing for a loan.
You can refer to these useful tips to make a decision:

Get a stable income source: You should have a stable job with a good salary. If you pay income tax regularly and get a form 16 from the employer, you can apply for a loan. If your spouse is also employed, you can apply for a loan together, which increases your prospects of getting the loan.
Know your credit score: Your Credit Scores is used to get a summary of your credit history which determines your prospects of getting a loan. In order to be accepted for a loan, you need to have a good credit score or your application will be rejected. If you don't know your Credit Scores, know it.
Clear your previous debts: If you have a burden of debts, it becomes difficult to get a home loan. So don't forget to clear your debts before applying for a home loan.
Your property is the decisive factor: Your property plays a big role in deciding whether you'll get the loan or not. Property purchased from a highly regarded builder and having the approval of some banks already is going to help you a lot. If your property comes under the category of resale property of more than 10 to 15 years old, it might make the process a little complicated. The state of your property will be examined in detail. You will be required to clarify the legal aspects of your property. You might have to hire a lawyer to check these details.
Have a down payment ready: If you have successfully passed all the procedures, the next step is to get ready with the down payment. Most of the banks in India give 85% of the total amount of property as loan and the rest has to be paid by you while applying for a home loan.
Choose your payment tenure wisely: It is very important to decide your tenure. The options usually lie between 10 to 25 years. With increased tenure you will have to pay extra rate of interest but with less the monthly burden. So, consider all the factors; your income, your future earnings, your children's expenses, your other expenses, etc. and choose the time period wisely.
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