Planning to apply for a Home Loan? We have answered some frequently asked questions to help you get started.
Buying a house is one of the most important financial decisions where careful thought and consideration is required. If you are planning to apply for a Home Loan and don’t know where to start, then you are in the right place! We have answered a few frequently asked questions to help you get started.
How much loan am I eligible for?
Your Home Loan eligibility depends on various factors like age, income, debt repayment history etc. The eligibility criteria differ from bank to bank. But, before you decide on the loan amount, it’s smart to evaluate your current financial situation and determine how much money you can comfortably shell out each month.
Check your Home Loan eligibility here.
What are the documents required for a Home Loan?
Keep these documents handy before applying for a Home Loan:
- Photo ID and age proof
- Signed Application form with a photograph
- Residence proof
- Bank statement from the last six months
- Property documents
- Salary slips (last three months)
- Form 16
- Income Tax returns for the last three years with income computation
- Balance sheet and Profit and Loss account (CA certified or audited) for the last three years
How is the EMI calculated?
Before you approach any bank for a loan, it’s important to find out how much you will be spending each month on your Home Loan EMIs to avoid any nasty surprises later. But EMI calculations can get a bit messy. Don’t worry, our Home Loan EMI calculator will help you calculate your EMIs in a jiffy!
Check this: How To Use Home Loan EMI Calculator
What factors should I consider before opting for a Home Loan?
Here are a few factors that you must consider before taking your pick:
The interest rate
The rate of interest on your Home Loan can have a major impact on your EMIs and your total interest outflow. Shop around for lower interest rates before choosing a lender.
Also, decide whether it’s ideal to take a loan with a fixed interest rate or a floating rate. Generally, when interest rates are falling, a floating rate might be better. However, if interest rates start rising, shifting to a fixed rate loan is a better choice.
Processing charges and prepayment terms
Compare loan prepayment terms and different charges like processing fee etc. charged by lenders before settling on one.
Check Your Credit Score
Your Credit Score has a major impact on the approval of your Home Loan application. Your score is based on your previous borrowing and repayment credit history. If you have a high Credit Score, you are more likely to get a better Home Loan deal with the bank.
Click here to check your FREE Experian Credit Score in less than 3 minutes!
Most banks take an average of 5-10 days to approve a Home Loan, when all the documents are in order. Select a lender that has a good reputation with respect to turnaround time and customer service.
Additional Reading: 5 Unbelievably Simple Hacks For A Quick Home Loan Approval
With extensive paperwork and running around, buying that dream home can become a tedious process. Fret not! To make things easier for you, we have paperless Home Loan offers from top banks exclusively for you. Go ahead and explore your options right away!