Introduction
Purchasing a dream house with a home loan may not be as simple as many people might believe it to be. For most people in India, owning their own house is a big dream, and just a small percentage of those people can achieve their goal without getting a home loan. The major proportion of people goes with the option of getting easy home loans to fulfill their dream.
For people with a very low income, or who are unemployed, there exists no income proof home loan which is challenging to achieve, but, not impossible. Securing easy home loans without any proof of income requires you to research well about the recent trends in the market. There are numerous challenges you might face while applying for a home loan. In this article, we will list such challenges and how you should work to overcome these.
Let's take a look at some of the obstacles you might experience along the way to getting a home loan and how to overcome them:
- No income proof home loans: Most banks require valid proof of your income so that you are able to repay back the loan amount with interest. If you are unemployed, then it is a bit challenging. Securing a no income proof home loan has a bit lengthy process. If you don't have proof of income, you might have to satisfy other criteria to secure a loan against your house.
- Application rejection: Buyers who rush into a purchase without first determining whether or not they are eligible for a house loan, have greater chances of their application being rejected. Even if the applicant qualifies for a house loan, they should understand how much they may borrow, what documentation they'll need, and what their interest rate will be.
- Additional costs: You must be mindful of any possible fees associated with your home loan. There will be fees such as rollover costs, late payment fines, paperwork fees, and simple interest while repaying the loan. You should research these additional costs which might add to your home loan before starting with the procedure.
- Inadequate down payment: Most banks will grant you up to 80% of the price of your home, but you will be required to put out around 20% of the purchase price as a down payment. You must keep this sum on hand because the lender may decline your application if you do not deposit enough money.
- Property valuation differences: Sometimes, while buying a certain property, the seller might put it for a price much higher than what it is worth. In this case, if you have paid the booking fee in advance and you have not received the requested loan amount, you may land in financial trouble.
