subject: Home Loan Essentials: Things you must know [print this page] Home Loan Essentials: Things you must know
Once you'll finish reading what is mentioned here, you will definitely stop being troubled and agonized. Yes, you'll get to know about each and every requisite of buying your own home easily, without any troubles.
The only way to buy a dream house is to take a home loan. You must have heard about it and might have even thought of taking one. But until and unless you have grasped what is mentioned here, don't apply for any home loans. It is essential to be familiar with basic and essential intricate details before applying for them, so that you don't have to regret later.
The property you are planning to purchase will be secured against the loaned amount. You will be given the documents of your property, when you will repay the entire amount you have received as a home loan from the bank. If, somehow you are unable to repay the amount, then the bank will occupy your property and will later auction it for receiving the credit.
There are various clauses in the home loan agreement, which you need to give due importance to. You will not be availed the amount you will ask for. The principal amount will depend entirely on your monthly income and the capacity of repayment. Once the principal amount has been made certain, you will be asked to choose the type of interest rate you will be comfortable with, whether fixed or floating.
Whether you are self employed, business man or salaried employee you can ask for a home loan. Now days they have been simplified and made more accessible to regular people. With 12 months to over 300 months of repayment time span, there will be absolutely no burden on your shoulders.
But, you will have to pay around 10% of the amount of the property, as an upfront payment. Home loans are financed for only 85% to 90% amount of property and not 100%. So, if you are planning to buy a specific property make sure you have 10-15% of its amount to pay as down payment for being able to get a home loan and owning the property.
