Home Loans An ideal finance to buy your dream home

Author: Anurag Mishra

Home Loans are the real driving force behind the booming real estate markets in India. Because of the high inflation rate and property prices being skyrocketing high, it’s nearly impossible for you to buy your dream home dealing in full cash. You need to take a suitable loan to slowly and steadily turn your dream into reality. Without the home loan, millions of Indians are forced to live in a rented house. This only adds to their sorrows and with each passing day the rent is only going to inflate and they also don't have a stable place to live.

However, due to home loans today you can be a proud homeowner without arranging the enormous amount of ready cash in one instance. Since these loans play a vital role in sustaining the real estate segment, both borrower and developers equally rely on them.

Home Loans are not available only for the purchase of a house, but one can avail such finance to buy a resale property, construct, do renovate or extension of your existing property. Of course, there would be lending norms that need to be followed before lenders grant a home loan.

Ideally, the lender will sanction a loan amount of around 80-85% of your property value. Also, lenders are willing to include stamp duty and registration charges within the purview of your housing loan, so technically they are bearing more costs to fulfilling your dreams.

There are certain baselines requirements which once met, the borrower will qualify for a housing loan. Some of the parameters for the home loan would be borrower's income source, risk appetite, an additional source like parents or spouse income, age, location and future value of the property, and most importantly the credit score. Once the lenders evaluate the parameters you'll be offered a certain loan amount.

An exceptionally good credit score is quite important for lenders as you can not only build faith amongst lenders that you make timely repayment of your debt but also it will help you negotiate for low-interest rate deals. Even a 0.5-1% reduction can help you save thousands of rupees in the long run.

You can apply individually or jointly along with parents/spouse for home loans. The good thing is you have a longer tenure of around 25-30 years for loan repayment. But as a borrower, it’s advisable you plan your repayment of home loans as early as possible. This is because longer the tenure more would be your interest but you'll shell out more from your pockets. And lesser the tenure less would be your interest rate and you won't have to shell out more money for housing loans.

The competition amongst the pioneer players is getting stiff day-by-day and the benefits are passed onto the end user in the form of slashed interest rates, low to no processing fee, quick and easy loan sanction online and flexible repayment options. However, it’s advisable there is a lot of information on home loans being floating around through print ads, outdoor hoardings and majorly through social media platforms. It’s better to do a collective research of leading players in the markets. Check their market reputation, interest rates, the principal amount offered, and other charges applicable, flexible options for loan repayment and then carefully choose the one to purchase your dream home.

Availing home finance online is one of the quickest and convenient options.

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