Anyone would like to own a house of their own. The human dwelling has evolved alot since a last few years. It has changed from a cave to house that is packed with the amenities. Buying a house in a metropolitan city also a common town requires a huge amount of money. Not only money requires good amount of planning. Now with the various home loan schemes given by the various banking and the non-banking institutions the common man’s dream of owning a house has become true. You can apply for a home loan at various banking and non-banking institutions which provides property loan. These loan against property are given at a lower interest rate which can range between 9-10% of the loan amount. The processing fees over this home loan are very nominal that is it is 1-2% of the total amount.
Following are the factors that are considered while availing the home loan to an individual:
The nature of the job of an individual is the most important factor that is considered by the various lending institutions. The income of the person decides the loan amount the person is eligible for. As the income is source from where the person is going to pay the emis it is taken into consideration largely. Location of the property is another important factor. If the property is closely located to the major tech hubs, educational hubs, falls under the project that are government authorized the loan gets sanctioned easily. The government approved projects are always safer to buy. The personal details of an individual are also taken into consideration. Details like the income source, the spouse’s income, the credit score of the individual are all taken into consideration before the banks sanctions the loans to an individual. If an individual has a good credit score he can easily negotiate for a lower interest rate. A small concession can also make a lot of difference.
Whenever you avail for a property loan club all your incomes to get the best deal on your loan. Additional income like rent or any other immediate income your family earns will help you move out of the eligibility bracket and avail for a higher loan amount. Have a good creditrating is also important as the lending institutions do a background check of the person before availing him a property loan. This will help him to avail for a loan faster and he can negotiate with the bank for lower interest rates. The documents that are required by the lending institutions for the loan against property are your income certificates, employer qualification, and experience.
It is always to keep your documents hand. Also compare the property loans on the various comparing websites this will help you to avail for a better loan with a lower interest rate and flexibility in the repayment method. Every borrower must evaluate his needs and choose the appropriate loan against property. Also he should calculate the income and his expenditure before deciding the loan amount he is going to opt for. He should also be very clear about the calculation of the interest rate, the monthly payment of the EMI and the fees he has to pay.