A-z Of Home Loans

Overview

Overview

To acquire a home which can be christened your Own House is a life-time decision & has to be taken with a lot of planning & requires huge finances. Below is a small guide which would answer some important questions related to Home Loan & help you decide your loan deal.

What is a Home loan?

Home Loan is a Secured Loan offered against the security of a house/property which is funded by the banks loan, the property could be a personal property or a commercial one..

Types of Home Loan

There are different types of home loans available in the market to cater borrowers different needs.

Home Purchase Loan : This is the basic type of a home loan which has the purpose of purchasing a new house.

Home Improvement Loan : This type of home loan is for the renovation or repair of the home which is already bought

Home Extension Loan : This type of loan serves the purpose when the borrower wants to extend or expand an existing home, like adding an extra room etc.

Home Conversion Loan : It is that loan wherein the borrower has already taken a home loan to finance his current home, but now wants to move to another home.

Bridge Loan : This type of loan helps finance the new home of the borrower when he wants to sell the existing home, this is normally a short term loan to the borrower & helps during the interim period when he wants to sell the old home & want to buy a new one, It is given till the time a buyer is found for the old home.

Home Construction Loan : This type of loan taken when the borrower wants to construct a new home.

Land Purchase Loan : It is that loan which is taken to purchase a land for construction & investment purposes.

Documents required in Home Loan

Generally the documents required to processing your loan application are almost similar across all the banks; however they may differ with various banks depending upon specific requirement etc. Following documents are required by financial institutions to process the Home Loan application:

Age Proof

Address Proof

Income Proof of the applicant & co-applicant

Last 6 months bank A/C statement

Passport size photograph of the applicant & co-applicant

In case of Salaried

Employment certificate from the employer,

Copies of pay slips for last few months and TDS certificate

Latest Form 16 issued by employer Bank statements

In case of Self-employed

Copy of audited financial statements for the last 2 years

Copy of partnership deed if it is a partnership firm or copy of memorandum of association and articles of association if it is a company

Profit and loss account for the last few years

Income tax assessment order

by: jacksup

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