We all know how hard it is to avail a home loan. It’s a long and a tiring process. Right from choosing a suitable bank to fulfilling all the terms and conditions of the bank, these processes never seem to end. In order to apply for a home loan, you need to go through the following general steps:1. Obtaining an application form2. Paying the fees for home loan processing3. Face to face discussions with the bankers4. Checking of the Applicant’s credentials5. Getting the loan sanctioned after verification6. Submitting legal property documents7. Site verification by the bank8. Document registration9. Signing an agreement and issuing post dated cheques in repayment of the loan10. Disbursal of the loan amount by the bankThe most common advantages and disadvantages of availing a home loan are as follows:Advantages:
- A home loan acts as a major financial support to property buyer
- Taking a home loan and repaying it in installments is preferable in comparison to making down payments
- For tenants, paying home loans in installments is a good substitute to paying heavy rent every month. It gives a sense of property ownership as well.
- There are numerous tax benefits and exemptions, when availing a home loan, since the EMI paid gets exempted from the tax liability
- Banks offer diversified home loans for the purpose of renovating, extending or converting a property
Disadvantages:
- Fluctuating interest rates and Penalties on delayed repayments can fall heavy on finances.
- Home loans can create a problem at the time of resale of the property within 5 years.
- At times the bank can reject home loans for unexpected reasons which causes difficulty in availing home loans
- There can be financial risks if time is not managed properly. The loan taker must be regular in paying the monthly installments.
- Choosing a fixed or variable rate of interest can be fruitful or risky depending on the changing market conditions. Loan applicants have to bear the burden of this risk.
Following are the tips to be kept in mind before availing a home loan:1. Terms and Conditions:At the time of selecting the loan, you must check for the terms, conditions, clauses and charges regarding the loan. Make sure to check whether the terms and conditions of the loan fit your financial capacity as well.2. Choose the Lender wisely:In order to choose the lender wisely, you must check out different home loan schemes. Compare these loan schemes so that you’ll find out which one is the best deal. Try to go for a nationalized bank.3. Target maximum Down Payment:Lesser the loan amount, lesser will be the interest and lesser will be the stress. So at least pay 30-40% of the total cost of the home from your pockets.4. Bargain:Who says you can’t bargain on a home loan? Pick out the best lenders and bargain on the rate of interest. You can very well negotiate on the rate of interest. Many financial institutions are reluctant at first, but eventually they do give in to a certain extent.5. Evaluate other fees:Apart from the rate of interest, you must also check up on other different charges like the valuation fees, processing fees and so on.These are most important tips that one should be aware of before taking the home loan. However, finally, you must not forget to do extensive research and home work before stepping into the loan availing process.займ на карту без отказов круглосуточновзять кредит онлайн
Very interesting topic “Home Loan”. Thanks for sharing this.