Getting home loan sanctioned is a must thing as you the aspiring home buyer requires financial funding to buy a abode. But, before getting the loan sanctioned the applicant is required to submit the loan application form which is assessed by the lender and the lending institution is the one who lets you know the exact loan amount that an aspiring home buyer can avail. So, keep in mind the below-mentioned points and increase the chance to avail the maximum amount of a home loan:
Home loan is usually the first thing on mind of almost every home buyer as the amount involved in the home buying procedure is not small that one can deposit. So, be cautious about getting a home loan sanctioned as the minor mistakes made in the loan application process can turn your financial condition upside down. So, go through the below-mentioned points and learn about the mistakes that can hamper your home loan application:
A rejection is not an easy thing to digest. But sometimes we have to face it due to some technical reasons. Yes, here I am talking about specifications. Thus, you must try to keep proper documentation of everything as it helps in timely completion of various procedures.
The procedure and documentation are directly related to the home buying process. So, if you have selected a dream home then congratulations first of all. Secondly, you must apply for a type of home loan that suits your budget. But, a major trouble may obstruct your smooth drive to home. It is because of incomplete paperwork or your age, etc. In fact, there are many reasons for a home loan rejection. Thus, don’t get disappointed as you still remain eligible for a home loan post rejection also.
A home loan is something that gives Goosebumps to almost every one of us. Thus, you must assure yourself with a proper repayment plan while applying for the same. As this is a perfect way to deposit the home loan amount in a short span of time. But, apart from drawing a proper payment plan you should also keep the dos and don’ts of the home loan repayment in mind.
Remember every loan comes with little uncertainty. This is mainly because of the three below-mentioned reasons.
Owning property is a dream we all cherish. In fact, people push themselves to the limit for being in a great financial position. As it is the only way to turn the dream house into reality. Unfortunately, everyone is not so lucky to have their pockets full of money. But, this won’t mean that you are not eligible to buy home. Yes, don’t get disheartened as the Investors Clinic helps you know everything necessary to be a homeowner.
The first thing to buy a home is money. Therefore, you must know all types of home loans available in India. Today, everything has become costlier, thus buying and maintenance of property have become difficult. Thus people have different home loan requirements. But, not many of you have the idea about the types of home loans available in the country. So, take a look at various types of home loans available in India today. [Read more…]
Home Loans are typically given on 80-85% of the entire property value. The rest of the amount (15-20%) which is to be paid to buy the property is called the Margin Money or the Down Payment. The banks require the property buyer to pay this Down Payment amount from his/her own pocket. To pay such a corpus which can range in tens of lakhs of rupees, it is crucial for you to gather your down payment amount in such a manner that it doesn’t burden you financially when the time comes to disburse the same. For this to happen, it would be beneficial for you to be aware of thebelow planning methods which can help you pay your Down Payment:
Save then Spend: If you plan to buy a home, then save for your home systematically. A well-planned saving which is spread-out in phases can help you in paying the down payment amount without causing much concern. Savings of this corpus can be done through initiatives like Recurring Deposits and Mutual Fund Systematic Investment Plans. It is vital for you to pay your EMIs on-time to keep your credit score up and that can only happen if you save for the down payment and pay it in the initial stage so that later you can timely pay the home-loan EMIs. Moreover, be careful if you plan to borrow from other sources to pay the down payment amount as such borrowing can lead to you paying two sets of EMIs-one for down payment loan amount and other for home loan payment amount. Additionally, if you are taking a loan for paying the down payment, then the bank may become uninterested to lend you a loan as the bank may stringently re-evaluate your capability to repay. Hence, ideally pay for your down payment through your savings rather than borrowing from a bank. Furthermore, if borrowing is the only option, you can consider borrowing from a friend or your employer or a relative too.
Home loans help you own the home of your dreams. Additionally, the government lets the borrower claim tax subsidy on both the principal and interest amounts paid. Moreover, you can save extra if you opt for a joint home loan (with two or more borrowers). In the budget for the financial year 2017 – 2018, maximum interest exemption for tax benefit on home loans has been capped at Rupees 2 lakhs including that on the rented property. This basically means that each co-borrower in a joint home loan is eligible for a tax deduction of Rupees 2 lakh for the home loan interest paid by each of them. There are tax subsidies on principal repayments of the home loans too.
Additionally, with schemes like the Prime Minister Awas Yojna (PMAY), the central government is offering 3-4% interest subsidies on home loans from Rupees 9 lakh to Rupees 12 lakh to first-time borrowers. Moreover, since MCLR-linked loans have been launched, most of the banks are arranging to pass on any subsidies by the RBI to the customers. SBI, Axis, ICICI and HDFC banks along with Indiabulls Housing Finance have lowered their home loan interest rates. Thus, it can be said that 2017 is a high-time to take a home loan especially since many government benefits on loans may end by the end of the calendar year. Read on to know how to save more with a joint home loan: [Read more…]
Some financial institutions have banking practices which don’t allow home loans for mature borrowers. If you are 40, banks may sanction you a loan but cut down the borrowing tenure so that your home loan is paid back before your retiring age which is around 60 to 65 years. For those who have crossed the half century mark, there are no fixed rules or guidelines by banks to give out home loans.
So it certainly becomes difficult to get a home loan if you are middle-aged and to make it possible, you have to produce a lot of documentation and have a smart exit strategy to get an approval on your desired home loan. [Read more…]
There is no end to one’s desires and ambitions, everyone has them! When we think of investments we all want to invest in those things which will give us good returns or dividends and at the same time are risk-free. One option that matches this criterion is real estate; if you invest right then you can be assured of lucrative returns.
However with the ever-increasing price graph it is not advisable to buy a home from your savings only—so the second best option is to get a home loan. But at the same time you need to be wary of Home Loan schemes as they come with their own terms and conditions. You must be well aware of all the small clauses or you could end up paying more than you bargained for. [Read more…]
Home is really big ticket item for a middle class individual as it entails several financial commitments. Mortgage loan, or simply a home loan, is also a huge commitment and involves a whole bunch of paperwork. But the most important thing is the income and credit score after which you qualify for a loan. For those who have an income lower than the eligibility levels, the banks also give the opportunity of inviting co-borrowers into your loan.
Now, if you have been asked by a close friend or a relative to be a co-signer for his home loan, do not just jump into the deal. You might completely trust your friend, but you should not forget that it’s a dog eat dog world. So before you agree, here are a few facts related to co-signing that you must consider-
Responsibility Comes With Risks
Co-signing a home loan is not just a goodwill exercise that you can do for your friends. It puts on you as much responsibilities as the primary borrower himself. If the primary borrower fails to make the payment or if anything else goes wrong, you will be held equally responsible. The proceedings and payments of this loan will also have direct impact on your credit score. [Read more…]