subject: Fulfill Your Dream Of Having Your Own A Home With The Home Loan [print this page] Majority of us cherish the dream of having a haven of our own. Many save up all their life to fulfill this desire but the rising cost of real estate works as a major discouraging factor. With this in mind many banks and finance companies came up with the option of home loans. This is the most availed loan in the country and has been successful in fulfilling the dream of many.
A home loan is not just available for the purchase of a home. This can be used for other aspects in your quest to get a home. These include needs like renovating your house; constructing your home on a piece of land etc. Read the requirements for which a home loan can be availed
Home Purchase Loan
The commonest kind of home loan availed. Under this category the amount is sanctioned to the borrower to buy a house that is either ready for possession or is under construction.
Home Extension Loan
You can avail this type of a home loan to make changes to your house. The loan is sanctioned in case the borrower needs to make major changes in the house related to extending. You will need to submit an approval from the municipal authorities to apply for this loan along with the other documents as required.
Home Construction Loan
This loan is sanctioned when the borrower needs to build his home on a piece of land he already owns. The terms and conditions applicable under this loan are completely different from the regular home loan conditions.
Land Purchase Loan
Home loan can also be availed to buy a piece of land. The required amount is sanctioned to buy a piece of land for either investment or construction purpose.
Stamp Duty Loan
You can also avail a loan to pay for the cost endured in the stamp duty process.
When availing a home loan, it is important to remember that a bank or a finance company will only offer to cover 80 90% of the cost of the home you wish to buy. The rest of the amount has to be covered by the borrower. Major eligibility criteria to qualify for a home loan are your earnings and overall repayment ability. Hence, while availing the aid you will be required to submit a few documents to support your monthly/ annual income. The documents required for a home loan include source of income, employment records, identity and residential proof, educational qualification certificates and last six months bank statements.
An important aspect to consider is the interest levied on the home loan you avail. Every provider has a different rate of interest to offer. Hence, it is important to research the different products in the market to get the best deal. As observed, public sector banks offer a lower interest rate compared to the private sector banks. But private banks offer a host of benefits along with the loan provided. It is up to the borrower to choose which provider suits his needs.
