Many people who are planning to buy their dream home house have to face various pertaining to housing loan interest rates, trusted bank or finance companies,the principal amount they get qualified for, processing fees applicable, the tenure of the loan repayment, etc. Indian people are typically adapted as such that they just go with the first house that falls in the price range. But, this is wrong. There are leading private finance companies that offer customized solutions to customers that will not only meet their housing requirement but also fit into their budget.
All you need to do is a suitable comparison especially online so that you judge the best home loan offer in terms of benefits & features, affordable interest rate, lower processing fee, and other important parameters. However, the decision should not be based on the need, but also on the individual’s financial readiness. Also, deciding on how much we can “afford” depends on how much we can borrow.
A housing decision is always big and often perplexing, especially for first-time buyers who have several questions in their mind such as is this the right time to buy a house? Is it the right location? Should we continue to a rent-based house? What is the interest rate applicable? etc.
Before going ahead with the decision, it’s important to assess your affordability. Banks or finance companies provide loan amount up to a maximum of 80% of the agreement value of the house. Every bank or finance company has its own set of criteria under which you’ll have to show the margin money of around 15-20% handy before applying for a loan. Therefore, make sure you have enough saving to match at least 20% of the down payment also have little extra savings to cover a few months of your home loan payment. Recession, health risks or other perils can come at once so it’s better to be prepared to cover your expenses for a couple of months.
The maximum loan amount you can get depends on factors like income source and credit score. A steady income source and a good credit score mean you’re a responsible citizen. You have the loan repaying capacity on time and don’t believe to come under default list.
Whenever an individual has been employed in the same job or in the same type of job for at least 2 to 3 years, it shows his or her stability, job protection and continuous source of income for loan repayments.
Therefore, a housing loan approval is more likely. It is advisable if you’re consistent in any job for more than 2 years and simultaneously looking to buy a house, wait until your loan gets approved. Your debt-to-income ratio is considered while applying for home loans. If you really want your loan to get approved, then you need to make sure you pay off as many debts as possible in order to look favorable to the home loan lenders. People with low debt to income ratio are more likely to get their loans approved quicker.
Once you calculate the interestrate, monthly installment, processing fees and other charges associated with a house loan, you can visit any of the leading banks or finance companies websites.Fill up the loan application form without any errors, upload a scanned copy of all the necessary documents and attach them along with your application form and submit it. Once the lender successfully verifies the documents, it will take around a week’s time for the loan amount to get disbursed in the account.You can download forms on your smartphone, PDA, Tablet, and desktops. At the comfort of sitting at your residence or office, you can calculate the loan amount and discover out the estimated/projected loan amount. Just insert the loan requirement in the respective column, your income, housing requirements and begin your calculations. Online medium will save you time and valuable energy in visiting offices.