While planning to buy a house requires huge capital and a great capacity for planning things, as when we decide on purchasing a house, we do not want to compromise on any details. Thus home loan is a provision of funding for the purpose of buying a house. Now with more and more schemes of home loans, one does not have to worry about availing one.
Further, we have listed down some factors that are used while evaluating one’s home loan eligibility:
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Nature of the Job and income level- While applying for a home loan the lender will check your job prospects and income level. The minimum salary level for getting a home loan is INR 10,000. There are also some professions in the ‘negative’ list of housing finance companies. An individual coming from one of those professional backgrounds can cause a lot of hassle before he/ she avails a home loan.
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Location of property- Likewise, these financial institutions also have a ‘negative area list’ that they may consult while lending credit. A borrower applying for a home loan in such areas might not be granted credit by housing finance companies. The same case scenario goes for the properties that are falling outside the geographical limits of the territory.
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Personal details of an Individual- Details regarding the borrower are also required while getting a Bank of India home loan approved. Sometimes details like the ratio of dependency rate on the borrower and the credit repayment history are also checked before the sanction of a home loan.
We will also take a look at the documents that are required based on one’s occupation, employment, qualification, and identity while applying for a home loan:
- Income documents- An individual needs to provide income proof to his/ her lender with a help of a salary certificate, Income tax returns, bank statement, etc.
- Personal documents- Identity proof is required through the help of a PAN Card, Voter ID, Passport, and Driving License.
- Residence proof- While applying for a home loan one also needs to verify the address they have given by providing a telephone bill, Electricity bill, Property tax receipt, Passport, Voter ID, or Bank Account statements/ passbook.
- Age proof- age proof is generally verified while verification of one’s identity or different banks have different criteria for age proof.
We will look at some of the tips before financing a home loan:
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To get the best deals on a home loan scheme you can club all your income, so as to increase your net salary amount.
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You can add your spouse’s income with that of your income and the additional perks, rent and any other source of income that your immediate family member earns can be clubbed too. This might help you to get into a higher eligibility bracket.
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Lenders will allow a lower rate of interest if they see you have a very good credit history. You need to prove to them that you are not overburdened with credit card bills, unpaid EMI installments, and other debts.
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Before availing of a Yes bank home loan one should evaluate his/ her requirements and choose a home loan like a home construction loan or home improvement loan on the basis of the evaluation.
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The borrower willing to avail of a home loan must calculate his income level and his repayment capacity before submitting the application.
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An individual looking for borrowing a home loan should be clear about the calculation of interest rates, monthly installation, and other charges that he/ she might have to pay after availing a home loan scheme.
It is suggested to the new borrowers to search the market before availing home loan schemes. One should thoroughly compare the interest rates and other charges like processing fees, foreclosure charges, etc offered by other institutions before coming down with one selected scheme. The whole process of searching for home loans has become a hassle free process because of the availability of the internet and online procedures.
