Opting for Home Loans to Become a Home OwnerDecember 30, 2014•by indianrealestate•Home Loan•No Comments Every individual wishes to have a home of their own, but some savings in your pocket cannot help you make your dream come true. Purchasing a house means draining out your lifetime income and in spite of this some amount may still fall short. To fill in the gap or shortage of funds it is important to apply for a home loan from bank or financial institution. How are home loans offered? Home loans are offered to individuals to give them support to buy their homes easily; however such loans have to be repaid within a pre decided time. A certain amount is fixed as monthly payments and borrower should make sure that such monthly payments are made to the institutions. A home loan is granted to a person on the basis of their equity. Equity is value of your home after deducting any kind of mortgage amounts due. Lenders may take various factors into consideration to determine the amount of equity of the borrower. The property or home of the borrower will be used as security for the loan and it may not have any impact on existing mortgage anyway.Why are home loans for? A home loan is taken for purchasing or constructing a house. It can also be taken for other purposes which include improvements in your home, consolidating existing debts if any or to buy any of the luxuries.
The proceeds of such loan can thus be utilised for supporting any mortgage or securing the loan. Existing house or other properties can be kept as collateral for getting a loan or finance on easy terms.Benefits of home loanA large amount of loan is offered to the client on easy repayment terms. The amount can be huge with long repayment period ranging from 5 to 25 years.The loan options are kept convenient and comfortable for the users, such that can avail and then repay the loan using easy methods.Home loans can be taken either on fixed rate of interest or floating rate which is also known as adjustable interest rate. According to adjustable interest rate the interest rates applicable on home loan shall change with fluctuations in market rate of interest. The borrower can also pay interest only loan, wherein the borrower is requested to pay interest for a month, while the principal payment is kept flexible that is the amount to be paid is decided by the borrower on his own discretion.
The motive of the borrower should be decreasing their financial liability at the earliest which can be achieved with frequent and huge amount of payment of instalments.Steps of applying home loan Applying for a home loan is a tedious task in itself, and it requires te borrower to go through a series of steps which includes;Availing credit score from any of the top credit rating agencies to find out if borrower is capable of getting the loan and repaying back.Search for lenders in the market which are providing loans. Also inquire about the kind of home loans provided by such lenders.The procedure of filing loan with the bank is fast or not, because some lenders offers the flexibility of filing an application online which makes sure that application process is undertaken at the earliest ensuring that the borrower gets loan at the earliest. Such online procedures and easy methods should be preferred over traditional method as it helps you availing the loan much faster.Application can then be filed with different banks and types of loans whichever suits the requirement of an individual. Such application fees have to be accompanied with loan processing fees, which in case of rejection shall not be refunded back to the borrower.
Once application has been approved, other verifications shall be done by the bank to ensure that facts stated by the borrower are correct.After above formalities have been fulfilled, bank shall grant the loan and provide loan proceeds to the borrower. Against this loan, bank shall keep the papers of the security in their custody which will be returned on the date of full and final payment of loan.Final Words The above simple steps can thus be followed to avail home loans for purchase of home and real estate properties. Choose the best company to provide you home loans at cheaper rate and better benefits.applying for home loanhome loanhome loan applicationopting for home loans