Are you Applying for a Home Loan- Here’s your Perfect guide
With the increased population and growing rental charges, everyone wants a property that they can call home. With the change in time, buying of a home property in EMIs has become extremely easy. The article which you are reading talks about the criteria of the eligibility for the home loans, the documents you need for a home loan application, how home loan interest rates vary, and other related things. If applying for a home loan is on your mind, then make sure you read this article till the last.
Why have home loans become essential nowadays?
The rates of the properties are continually rising at a leap and bound pace. That means an increase in the rental income as well. The rent rates are increasing at a rate of more than 7 to 8 % annually, and in some cases even more, which will make you drain your hard-earned money and will not benefit you in the long run. On the other hand, if you pay EMIs instead of the rent on the property to the landlord, it is maybe painful in the short-run as the rates of EMIs are generally higher than the rent paid. But after spending the EMIs for approximately 10 to 15 years, you will become the owner of a fixed asset, on which the chances of depreciation will be nil as the value of the property tends to increase every year. That will yield you a higher benefit later. Therefore, applying for a home loan could be one of the wisest and essential decisions that you can ever make.
What are the criteria for home loan eligibility?
The eligibility criteria for all the financing institutions are different depending upon the need of the applicants. The common factors that make you eligible for the application of a home loan are as follows-
Based on Age:
- A person who is in the age group of 18 to 70 years can apply for the home loan.
Based on income:
- Eligible Salary: The minimum salary of the applicant must be at least Rs.25000 per month. The salary eligibility may vary upon the area where you live.
- Self-employed: Depends upon the financial institution you choose.
Based on work experience required:
- For salaried person: The person should hold working experience of at least three years or more.
- For self-employed person: The applicant should hold working experience in this regard for at least five years or more.
The documents that are needed for a home loan application?
The document required for applying for a home loan varies from institution to institution and from individuals to individuals. Some of the essential materials that are needed are as follows-
- Passport size photographs
- Identify Proof
- Address Proof
- Income proof
- Job continuity proof
- Bank statements for the past six months
- Property documents
- Office address proof
- Others
Interest rates vary in home loan
The interest rate of the home loan differs from time to time and from bank to bank. Some institutions revised it annually, and some changed it in the six months gap. There are some banks whose bank rates remain the same for a more extended period. Before applying for any loan interest rate is something critical that need not be ignored at any cost.
Conclusion
Before applying for a home loan in any financial or banking institutions, act wisely, and do your research thoroughly. After doing the research, which ever institution meets your requirements, go for it!
