Don’t have enough savings to purchase your dream home? Worried about interest rates and bank’s transparency? Home loans provided by financial institutions and banks need to be thoroughly understood before choosing an apartment in Trivandrum.
Occupying a dream home is an accomplishment for every middle-class family in India. Owning a home is considered to be a sign of an individual’s success in society. Home purchasing decisions should not be based on the need, but also on the individual’s financial readiness.
For the first time buyers, buying a home is always a messy business. Their mind is filled with too many concerns and questions. Is this the right time to buy a house? Is it the right location? Should we continue with a rent-based house? What is the interest rate applicable? In the present scenario with many financial institutions providing aid like home loans, buying an apartment or any living space is comparatively less tedious than earlier times. Banks now provide competitive interest rates across the country. Many people who are planning to buy their dream home house have to face various questions 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. There are an umpteen number of private finance organizations that offer customized aid for customers in meeting their housing requirements within an affordable budget.
Home loans help customers with insufficient funds to purchase their dream homes and return the amount with an affordable interest through long tenures. This adds to the buyer’s convenience and reduces the stress of amassing the total cost of the property at the time of purchase.
Banks provide loans up to 80% of the agreement value of the house. Every bank or finance institution has its own set of criteria which have to be met by the buyer. The buyer needs to have 15-20% of the amount in hand while applying for a loan. Therefore, before applying for a loan, make sure you have enough savings to match at least 20% of the down payment and also have little extra savings to cover a few months of your home loans in Trivandrum. The maximum loan amount a buyer can get depends on factors like income source and credit score. A salaried person with a good credit score can easily avail loans from any bank or financial institution.
Home loans are considered as the most popular product offered by the NBFC banks.
It is even considered as the largest selling banking product by the banks and also the longest relationship maintained with the lender. Buying a home for your needs is once in a lifetime decision. So, one must make the best option regarding housing or home loans.
Types of Home Loans:
There are different types of home loans provided by financial institutions. They are:
1. Home Purchase Loans
2. Home Conversion Loan
3. Home Loan for Construction
4. Home Renovation/ Extension Loan
5. Plot Loans
6. Balance Transfer Home Loan
7. Bridged Loans
8. Stamp Duty Loans
9. NRI Home Loan
Now, how do you choose the right home loan for your dream home? Sun Homes, pioneering builders in Trivandrum list some of the key points to look for while applying for home loans.
1. Cost involved
After you choose the dream home to purchase, one has to calculate the total cost including additional overhead charges. Overhead charges can be anything from dealer charge, registration, legal fees, stamp duty, etc. To get the exact amount for which a home loan would be required, one should always consider a buffer amount in case the expenses exceed the expectations when closing the deal.
There are many options to get home loans through various banks or financial institutions. One needs to browse through all available options and compare the same.
Consider parameters like home loan eligibility, interest rates, expected EMIs, pre-closure fees, repayment options, tenure, and more to compare the financial institutions in question, before deciding on the best home loan. One can now check online to know the best home loans in Trivandrum, credit score and best banks offering loans on affordable interest rates, etc.
3. Grab it right
Evaluate the home loans available and their interest rates. There are two forms of interest, floating and fixed. One has to choose from both according to the saving and loan amount. Choose a practically attainable loan repayment tenure and EMI.
4. Print document
You need to take time to read through the loan agreement thoroughly and understand its various aspects. Some of the important points in an agreement that applicants must evaluate are,
1. Processing Charges
2. Maximum loan quantum
3. Pre-payment charges
4. Pre-closure fees
5. Penal interest rates
6. Terms and conditions
7. Repercussions of missing monthly installments
8. Late payment charges.
9. Loan default penalty
The buyer needs to submit salary statements of the last three months along with bank statements, Identity proof, PAN card, proof of address, IT returns, etc. during applying. Always have a count of the overhead amount until the home loan is totally paid off.
Good luck finding your dream home. Also, do visit Sun Home apartment projects to witness your future home, built with quality and dedication.