Are you looking at a fabulous property and find that its cost is such that you cannot make a purchase right away? Don’t feel as if the opportunity of making a purchase is slipping by. Instead, opt for a home loan and quickly buy it, so that you gain an asset at a low price. Through a home loan, you can make a valuable investment quickly, one that will reap rich rewards in the future.
About Features of a Home Loan
Home loans are offered by many lenders enabling people to gain the finance they need to make a quick property purchase. These loans are sanctioned quickly so that the buyer is able to make the property purchase soon. Home loan interest rate varies from eight to fourteen percent. By opting for a lender with a low-interest rate, your monthly instalment amount will be less.
You should also ask the lender to give you a longer tenure period as this reduces the burden of heavy EMI payments. Check if the processing fees are low and if there are no pre-payment charges as this brings down loan cost. It is to be noted that there are different types of home loan products in the market, so you should check what is applicable for the property investment that you want to make before application.
To get a home loan with the lowest rate, you need to compare various lenders in the market. Do not opt for a lender who is unknown in the market as this can cause problems later. Seek a reputable lender such as nationalized bank who offers specifically low rates and that too for women borrowers. Ask if any discounts and programs can be availed to bring down interest rate even further. You can reduce the home loan interest rate by opting for a shorter tenure. This enables you to pay off the loan amount faster and set aside the problem of having to meet high-interest expenses.
What Documents Have to Be Submitted for Availing Home Loan?
There are so many documents that have to be submitted as part of the home loan process. These include the loan application form, proof of identity such as PAN card, Passport, Driving License or Voters ID as well as residence proofs such as payment for telephone or electricity bills else passport or voter id or property tax receipt. In addition to these documents, you will also be asked to show your bank statement for the past six months, salary certificate and latest income tax returns. With regards to the property that you are going to buy, it is vital to submit an evaluation report to lender from authorized evaluator, a copy of the construction plan and allotment letter from the housing board, or else a NOC from the builder.
You can reduce the amount that has to be paid as home loan interest by paying up more for down payment. This reduces the loan amount that must be given by the bank and alongside the interest too. It can also be brought down by making a part payment in the loan amount.