Build Your Own Dream Home with Affordable Home Loans
Every human being has three primary goals in life; food, shelter and clothing. It is said that “home is where the heart is” and true to the words, a home for you and your family is a matter most close to your heart.
Usually, the first home bought or constructed by an individual is done with the help of home loans. Before applying for one, you must know the current state of housing finance in India and then take an informed decision regarding the home loans appropriate for you.
Factors to check
You should always perform some preliminary checks before applying for a home loan. This way you get to know what is the best way to service the loan without making the repayments a monthly hassle. The salient pointers for your consideration are given below;
Organise your information
Apart from what your loan agent has to advise, you should always do a complete market research about the various home loans and the process to follow before applying for them. You should make a choice only after comparing home loan conditions from various sources.
Find the Interest Rates
The same rule applies for every loan, the lower the interest rate, the better it is. Nowadays, the interest rates have tipped towards the lower side quite a bit, which makes the dream of owning your own house a little more real.
Identify your home loan suitability
Your capability of paying your home loans determines your eligibility for getting one. So always go for the amount that you can repay without any hassles.
You can estimate the eligibility amount by using any home loan eligibility calculator available online.
Document and proofs at the ready
Your documents and proofs must be kept filled and neatly arranged for the application to take place. The proof of identity and address is the most important one to save. Make a complete checklist and arrange your documents accordingly.
Save the Sanction letter
The loan is authorised on the basis of the applicant’s monthly income, credit history and supplied documents. You will receive a sanction letter stating the loan sum, term and interest rate. Save this letter for future references
Choose Affordable EMI
Equated monthly installment or EMI is probably the main criteria that an applicant looks for while applying for a loan. This EMI will be debited directly from your account every month, so choose an amount that is within your monthly expenditure range. A generic rule of thumb is to never let your EMI exceed 40-45% of your monthly income. Talk with the officials sanctioning your loan about a reasonably priced amount to repay.
Know about tax profits
You should know that according to the section 80C of the income tax act, you are eligible for a deduction of Rs. 1.5 lakhs from the income, if you pay the principal on time.
Several lesser known facts like this can help you to acquire housing finance in India and repay it back the smart way. Do make sure to check for all facts about your home loan before signing on the dotted line.