Planning to purchase a new home but don’t have enough cash in your budget? If yes, then, in this case, the best thing you can do is to take a home loan from any financial institution.
Now, you will say that it is not that easy to get a home loan. Well, indeed you are right. Availing a home loan is similar to gambling as a wrong step can cause you pain for years. However, the good news is if taken right and precise step, buying a home can be pleasurable as well. We interviewed many people and came up with several questions that are given below.
I am Eligible for Home Loan or Not?
Before you even think of availing home loan, it is important to understand whether you are eligible for availing home loan or not. Your whole repayment capacity will determine your eligibility. And, now you will ask on what your repayment capacity will be determined? Well, it is based on your monthly disposable/surplus income. It is calculated by factors such as total monthly income/surplus less monthly expenses, and other factors like spouse’s income, assets, liabilities, the stability of income, etc.
What is the maximum amount I can borrow?
Many people think that the down payment factor is only included while availing commercial real estate loans in Denver. However, they are wrong as many lenders require 10-20% of the home’s purchase price as a down payment. Meanwhile, it will also include registration, transfer and stamp duty charges.
Should I Bring Co-Applicant for Home Loan?
Yes, it is compulsory to have a co-applicant while registering for the home loan. If someone is the co-owner of the property, it is necessary that he/she also be the co-applicant for the home loan. However, if you are the sole owner of your business then you can make any member of your family can become the co-applicant.
What is sanctioning and disbursement of the loan?
This question was asked by many people whom we interviewed. Well, we have solved your quest once in for all. As per the documentary proof, banks decide whether they should grant you loans or not. The quantum of the loan that can be sanctioned depends on this. Afterwards, the bank will give you a letter stating the amount of loan, tenure and the interest rate, among other terms of the home loan
What are the Documents Needed for Home Loans?
As for purchasing loan, you need a good amount of money and this is why lenders ask for any paperwork and documentation. The document will have a checklist of documents that are needed to be attached along with a photograph. Meanwhile, the bank will ask you to submit your identity and residence proofs, latest salary slip, any payment slip or any other thing. While, there are some financial institutes that will also ask for collateral security like the assignment of life insurance policies, national savings certificates, the pledge of shares, mutual fund units, bank deposits or other investments.
Conclusion: Now, when you know your current situation of taking home loans then it must have become easy for you to choose the right plan. We will always guide you to research thoroughly before you make a financial institute a part of your home as it can also become a gamble.