We develop your dream into reality with astounding amenities. We ensure supreme quality in our constructions and present you a happy, healthy, peaceful living for a lifetime. We just not stop there. The span we think of your wellness is countless. This article is exclusively for people who are planning to go for a home loan.
Home loans dwindles the burden of single and huge investment. Not only this, people opt for a home loan as it also helps in saving tax. Are you sure with the checklist before applying for a home loan? Overthrow your swift speed when you plan to own your home with a home loan.
Have an Eagle eye on this important checklist for h ome loan documents required!
Loan Eligibility: The loan amount sanctioned by the banks depends on your past records of transactions, repaying loans, credit card dues and income. These are crucial in home loan documents required. Usually, banks approve loan up to 80 percent of the total costing of the property. After checking with the eligibility and the value of the property, you will be given an eligible amount for your home loan.
EMI affordability: The most influencing point for home loan borrowers is probably the EMI. Expenses and saving from your income is to be calculated. Even though you are eligible for a huge amount of loan, as a golden rule considering your future, never exceed you EMI payment from 40-45% of your net monthly income. As you will be privileged with a pre-pay option when if you earn more and can afford pre-paying it. Banks doesn’t possess any penalties for pre-payment these days.
Down payment: Apart from planning an affordable EMI, you need to check with the payment from your own pocket in consideration of down payment, as no bank provides you with 100% home loan. Let’s say if you purchasing a property worth 100 Lakh rupees, any bank will offer a loan up to 80 lakh. Remaining 20 Lakh or above must be afforded by you at a stretch.
Interest rate type: You will find two types of interest rates named fixed interest rate and floating interest rate. If there is any expectancy in the fall of interest rate then you may prefer the floating interest rate as it changes depending on the RBI norms and various government policies and market conditions. You can go ahead with fixed interest rate to have a static amount of your repayment. Fixed interest does not change during the whole tenure of your loan.
Tenure of Loan: EMI of the home load is calculated based on the loan amount you opted for. EMI is inversely proportional to loan tenure. If you choose a long tenure for repayment, the EMI amount will be low and vice versa. Plan EMI and Tenure based on your expense and savings as you have an option of pre-paying the loan amount if you have any salary hikes. So weigh all your alternatives before finalizing anything.
Tax benefits: You must be aware of all tax benefits and tax implications you are entitled to receive while servicing your home loan. You can’t afford to miss this from home loan documents required. There is a benefit of complete exemption on home loans you pay, up to an amount of Rs. 200,000 on interest and up to Rs. 100,000 on the principal amount. Avail all these benefits, but in future, if you sell the property within first 5 years, the tax you save on payments will be added to your income from the sale of property and you will be taxed.
Insurance for Loan: In all home loan documents required, the most important step after getting your home loan disbursed is insurance for your home loan. In the case of any unfortunate incident, your family will get to stay on your property and home loan insurance will pay your pending loan amount. You have got other insurance policies too which benefit you in the hard times related to health or loss of a job but you need to consider the overall affordability as it will cost you above the EMI.
Loan lender: If you are the customer of Aditya, you got special benefits which we will discuss below. Choosing your loan lender from any Bank or financial company should not go simple. You need to do a research and know the detailed terms and conditions of the lender and compare the interest rates and the benefits of each lender. Now a day’s some banks are also offering smart loans with added benefits of prepayment method etc.
Hidden Charges: Make sure that you ask the bank a list of all the charges applicable in all cases in writing and never take their word for anything. As of now, there are no hidden or extra charges except for the processing fees, legal verification charges in some cases, stamp duty on home loan amount and some switching charges in rare. There may be some charges for releasing your property documents for any purpose during the tenure of the loan. Home loan documents required for back should be satisfying all its rules.
Document of agreement: your one signature is worth everything. Be aware when you sign the loan agreement. Make sure you read the complete document before taking an action. Get clarified with every term and condition in the agreement.
Know every single home loan document required before initiating the process for a home loan. We always wish the happiest residing in your dream home.
Documentation is very important in the home loan process. Many people don’t know about this. This is a good one which will be useful for many people