“Home is where the heart is.” Purchasing own home is something very exciting. Home is a place that gives you emotional warmth. However, the rising real estate prices have made buying a property miles away for most of us. Home Loan is the key to materialize your dream.
What is Home Loan?
Home Loan refers to the sum of money borrowed from a financial institution or bank to purchase or construct a house. The asset (property) is mortgaged to the lender as a security till the repayment of the loan. The lender (bank or financial institution) will hold the title or deed to the property till the loan is repaid with interest due for it.
Types of Home Loan
Home Loan may be availed for constructing a home, purchasing a ready built house / flat (from a builder or a resale property), LAP (Loan Against Property), residential plot, etc.
Documents required For Home Loan
- An application form duly signed by the applicant
- A processing fee check
- Age proof
- Identity proof
- Address proof
- Income documents
- Employment details
- Bank statements
- Proof of educational qualifications (if applicable)
- Details about the property (if finalized)
Home loan eligibility
The income of an individual is the main criteria to evaluate his loan amount eligibility. The banks, however, have their set methods to assess the eligibility. The loan tenure and the interest rate as well play an essential part in computing the loan amount. A good repayment track record, employment, etc. raises the chance of getting a housing loan. Customers qualify for the best rates depending on their profile, repayment history, earnings, turnover, repayment history, builder profile, etc.
Type of Home Loan Interest:
Insurance for Home Loan
This allows you to ensure your loan and pay back your loan in cases of death, accident, sickness or loss of a job. If you get your home loan insured and in the future in case you fail to repay your loan because of sickness, loss of a job or death, your insurance company will make up for your loan and keep your family away from the burden of loan. It is advised take the right loan insurance to make sure that your family still has a home in case of your sickness or death or loss of jobs.
If you are you looking to purchase a new home but don’t have enough savings; avail Home Loan!