Posted on

Basics Of A Home Loan

A Home Loan is a loan or financing you are taking in order to buy or renovate your home. Home Loan facility makes it easier to make or buy your dream home, and more affordable. Most banks and many different types of financial institutions offer home loans at fairly low interest rates to the general public. Whether it is for the purpose of buying or building a house or apartment, a home loan can be the easiest way to fulfill your dream.

How many will I get?

The actual amount of the loan you are eligible for, or are able to obtain, varies and depends on many factors such as your ability to repay it, your age, your family income, the number of dependents you are responsible for, etc. The amount of the loan will also depend on the lending tenure and the current rate of interest. Tenure is the total amount of time you’re given to repay the loan. Many lenders and banks can offer mortgage loans to buy a house or even an apartment, to renovate an existing building, or to allow additions or renovations to the current home. However, in the case of buying a second property, most banks will have a different policy and set of rules when you already have one house or flat, so be sure to ask some relevant questions and get clarification about your bank’s specifics before you sign.

Home Lending Process

There is a process for searching for a home loan, which depends partly on your need for clarification of information ads and partly on the internal bank processes. The first move is to apply to a few banks and financial institutions to continue the comparing cycle of rates to tenures. (Or you can use our tool to compare rates). After you agree on the deposit, the measures would be as follows.

  • Fill up the forms involved and request the required documentation.
  • The sanction of a bank or financial institution’s loan, depending on their age, repayment capacity and value of the property.
  • Loan disbursement, moving the balance of the home loan to you via verification.