Own Home With Home Loan
Everyone likes hearing people say “Wow, what a beautiful house you have!” From cave dwelling, we have evolved and now a house provides far more than just shelter…it has also become a source of pride. Buying a home requires large capital and good planning but now with the various home loan schemes available in the market, you need not get disheartened as home loans can make the dream of an own house turn into reality. Capital with some interest and a little paperwork the process is moved to the next step for approval. Home loan interest rates vary from one lender to the other. It depends on your property’s location, amount being borrowed, existing EMIs and your monthly salary. Many banks also offer concessions in housing loan rates for women.
But if you are taking a home loan, for the first time in your life, there are few things which you must know, before applying for the home loan.
Credit Score – Your credit score is one of the most important factors that influence home loan interest rates. A credit score is calculated based on your credit report which includes your credit history, including your loans, credit card repayment history.
Down payment – A larger down payment leads to a lower interest rate, as lenders see a lower level of risk when you make a larger down payment and make the rest in monthly payments.
Loan Tenure – Loan tenure is the duration of your loan in which you have to repay your loan. Shorter loan tenure means lower interest rates and lower overall costs, but higher monthly payments.
Interest Rate Type – Interest rates come in two basic types: fixed and floating. Fixed interest rates don’t change over time. The floating interest rate varies periodically over the loan tenure.
Paper Work / Eligibility
- Your Salary/ITR.
- Property Check.
- Your Profile, Academic & Professional Background.
- Total work experience.
- Your credit/default profile.
- Family Credit History Etc
Advantages of Home loan |
Sense of accomplishment
Tax Benefit: Interest paid
Tax Benefit: Principal Repayment
Home Loan is a secured loan and it is quite easy to get this loan faster because your home will work as collateral. Since it is not possible for most of the masses to have enough cash for buying their dream house; home loans have gained popularity to get the fund for buying a house as one can pay back these home loans, over a period of time through expedient equated monthly instalments. As most housing finance companies have reduced their interest rates, this is a good time to buy your dream home using a home loan. And with improved technology, the best way to look for home loans is online .