` The sky-rocketing prices of the property and the high-interest rate in the market can make the decision of buying your house a lifetime one. A home loan can be a powerful tool in managing your finances for home buyers. That is why it is important to get your mortgage through a company that teaches you on every aspect of your loan. If you are trying to find the right house for you, it is natural you want to make sure everything goes well. You do not want to be in the situation where the deal falls through due to some gap in the requirements and something lacking in the procedure. Majority of people do not understand how to take loan – and that can lead to trouble.
If you are a first time home buyer looking for a loan, here are certain important steps to take home loan easily. You may get a loan, even with bad credit, which will suffice you to consider buying your dream home. When you use a Home Loan EMI Calculator , it can give you a fair idea if you are eligible for home loans.
Getting home loans can be both easy and tough. Easy if you are well-versed in financial matters and learn how to use the Home Loan EMI Calculator effectively and tough if you do not know your way around banking procedures and do not pay attention to relevant details.
Here are steps suggested for you to make the procedure of acquiring the home loan easily.
- Research:If you are planning to take home loans, before approaching the bank make sure your actual requirement for which you are taking the loan. Check Interest rate of various banks. Though it might appear that most of the banks’ interest rates are around the same level, but there will certainly be differences. Choosing between a fixed and floating interest rate can be a difficult choice. It’s important that you consider both and use the Home Loan EMI Calculator to find which suits you.
Fixed Interest Rate: Fixed interest rate means repayment of home loans in fixed equal installments over the entire period of the loan. Interest rate remains fixed irrespective of market conditions.
Floating Interest Rate: It may go up or down as interest rates in the wider market change. It is entirely up to you to change to a fixed interest rate at any time, although some types of loans are only available with a floating interest rate.
- Check Eligibility:Every bank has its own set of eligibility criteria. The main concern from the bank’s perspective is to properly assess your repayment capacity. The higher your disposable monthly income, the higher the amount you will be eligible for a loan.
Professionals are always telling people about the modern tools available for prospective clients. Today various eligibility Home Loan EMI Calculator are available to give the most accurate estimate of home loan that you want to borrow. Various factors such as monthly income, fixed monthly obligation, current age, retirement age etc are taken into consideration to assess and calculate your Home Loan eligibility is calculated.
- Application:You can take the application form from any bank office or download it from the website to know everything about the loan. Fill the application form. After submission of application form applicant will be called by the bank for discussion on loan.
- Bank Investigation:This is the most important step as bank employee will investigate and verify the details mentioned in the application form. It confirms and validates everything stated in the application form. If the applicant meets all the criteria and it gets proven that he can repay, then the loan is sanctioned.
- Pre Approve Letter:A home loan sanction letter is a normal confirmation from the bank stating that it has agreed to sanction you home loan. Sanction letter should not be taken as the final and legal approval of the loan. A home loan borrower still has to submit further documents to finally acquire the home loan.
- Legal Check: The bank will perform legal check and these documents will be taken by the bank till the applicant repays the loan amount.
- Valuation Report:Banks will send an employee to verify the property against which the loan is taken. It checks whether there is any major defects identified by the valuer. The bank has qualified evaluators to assess the property value under established parameters.
- Registration and signing of Assignment:After valuation report, the home loan registration process begins. Finally. documents will be prepared. It will be signed by borrower signed and submitted back to the bank.
- Disbursement:Yes it is your payment time! Once registration is done, the bank will disburse the amount on the name of the reseller (for resale flats), builder, society or the development authority. It may give as either as a full payment or partial payment mode in stages.