‘Financial Terms’ Every Home loan Applicant Must Know

Being a homeowner is not an easy task as the entire procedure of availing home loan makes a person run from pillar to post. But, apart from comparing the financial institutions and documenting paperwork, the home loan applicants do not consider few essential terms which mean a lot to them particularly while repaying the home loan. So, here in this blog post, we help you known about the financial terms that sound heavier than owning a home:

Home loan

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Home Loan Default: Know Ways to overcome debt distress

Buying a home via Loan has become quite easier these days especially for first time buyers. With the change in the financial landscape these days almost all the banks and financial institutions lend money to buy home which can be easily repaid in easy monthly installments (EMI). But sometimes due to financial crisis, a loan borrower fails to pay the EMI on time due to which they are considered as defaulters. These unavoidable circumstances are known as financial distress or debt distress.

Home Loan Default

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Planning to Buy a Home? Use Provident Fund Wisely

Planning to buy a home but the insufficient funds is restricting your way? Then, calculate how much PF aka Provident Fund is there in the account since you started a job. This account balance supports you through the thick and thin times as the PF amount help you have an easy access to money while facing financial crises. So, this blog post will help you understand how to use PF alias the Provident Fund amount for purchasing a home.

Provident Fund

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Tips to Avail Construction Loan for Building a Home

The construction of a residential property costs too much and the financial funding for the same is bit different to avail in comparison to the home loan sanction. But, the availability of multiple loans are enough to lit up the hope for sanction of financial funding for the construction of residential property. So, opt for construction loan rather than gazing at the home loan section. This loan may be new to some of the readers but this funding is best suitable in case you are looking for financial funding to build up a home. The below listed things will help you know better about the Construction loan as it help in proper structuring of a living abode.

Construction loan

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Home Loan Borrowers: Know Why Lenders Ask You for Bank Statement

Seeking home loan? If yes, then you must also be wondering why a private home loan lender such as a financial institution/bank emphasis to have a look at the bank statement. Obviously, lending money that too in lakhs is not a joke thus the lender has all rights to check and recheck the necessary documents before sanctioning the home loan amount. But, many of the aspiring homeowners try to convince the lender that he/she will pay back in time. But, there is more than that which a lender is required to check. So, go through this blog post and know why a lender asks you for the bank statement:

Home Loan Borrowers

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Home Loan Fundamentals: Ways to Counter Increasing Interest Rates

The next step after selecting the property you wish to buy is the sanction of a home loan which has an essential component named the interest rate. This is the additional sum of the amount which you are required to pay in exchange for availing a home loan either from a bank or from any other financial institution.

Home Loan Fundamentals

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Being an aspiring home buyer or a current owner looking to buy a second home, you must be aware of the increase in the interest rate which takes place mainly due to two reasons. Firstly, the hike in an interest rate on a home loan is due to the change in Cash Reserve Ratio [CRR] set by the RBI [Reserve Bank of India] at a regular interval and the impact of the property market apart from the demand and supply of properties. This affects the budget of a family as there are other things to pay for such as the educational fees, bills and many other things. So, here we have listed the top things you must look when applying for a home loan:

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Legal View: Know the Sync between Property Construction and Income Tax Rules

Don’t feel relaxed only be receiving approval of home loan as the next step is construction of a residential unit/property which plays an important role for availing the Income Tax rebate. It might sound new to many of the aspiring homeowners particularly to those who wish to have an independent home/villa. But, take this seriously as things related to the construction of a property can make you lose huge money which can be earn back. So, consider the below-given points and pay attention to the timely completion of property construction.

Property Construction.

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Homeloan Fundamentals for Purchase of Resale Property

Today the maximum number of home buyers look for a fresh home means the newly/fresh constructed home but there are many who won’t mind buying a resale property. So, if you are confused about which one to opt for then let us tell you that purchasing a resale property/flat comes with their own benefits in comparison to the freshly constructed properties.One mainframe advantage of buying a resale residential property is that the prospect is likely to own a home which is prefixed with various fixtures such as fans, lights and hanging loops. Apart from this, the essential for homeloan on the purchase of same are listed below:

Purchase of Resale Property

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Home Loan Protection Plan: Know its Importance and Benefits

Planning to buy your dream house with the help of a home loan, but have a fear that if something unexpected happens, who will bear the burden of EMI? Well, don’t panic because today all the financial institutions including banks have solution for everything. And in such cases, a Home loan protection plan (HLPP) offers the best solution to all your problems.

Home loan protection plan

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So let’s understand the importance of this plan in detail:

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Important factors influencing home loan tenure

These days’ home loans are considered as one of the best and easiest way to buy a dream home. Almost all the salaried class home buyers choose this option and hence they find out a bank which offers lowest interest rates so that they can manage their EMIs easily. So in order to manage regular EMIs, one important variable which plays a major role is home loan tenure.

Important factors influencing home loan tenure

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Home loan tenure means the length of time that will be taken by the borrower to repay the loan along with the interest. While the tenure varies from 5–20 years, some banks also allow the time up to 25 or 30 years. However, the home loan tenure and home loan amount are directly proportional to each other. So, higher the home loan tenure, higher is the home loan eligibility, subject to the minimum margin requirement relative to the value of the property.

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