Housing loans are the best financial resource for people who are looking to fund their dream project. The purpose to avail finance would be anything like buying a new home or resale property, construction of a house, plot purchase, home renovation, extension or improvements, etc.
Due to the rising inflation costs, prior financial commitments, and family responsibility it’s nearly impossible for middle-class people to make enough savings to buy the home at one go. It requires a huge sum which is difficult to make arrangements in quick turnaround time.
Therefore, the housing loan would be an ideal tool that will help you materialize your dream project. It gives monetary assistance so that you can purchase your home, carry out renovation or improvements as per your liking with ease.
They will help you mitigate the gravity of financial issues, in order to materialize the dream housing project. Apart from making an application online, the housing loan requires submission of credentials like income proof, resident proof, age proof, and address proof.
Bank statement and IT returns are few more important credentials which you would have to submit along with the applications. Banks statements will include all your financial transactions, so it will help bank and non-banking finance companies to understand your spending habits. It will help lenders know your current financial status, and they would decide on a particular loan amount for you.
Some reasons that will improve your loan limits:
- Apply at an early age between 25-35 years
- Good Credit Score and Income Source
- Joint housing loan application
- Show good job or business stability
- Clear all your existing debts
- Opt for a longer tenure
- Choose a reputed project
The interest rates applicable mostly depend on the creditworthiness of the borrower. Strong creditworthiness denotes to the fact that you don’t have any outstanding loan or huge credit card bill behind. If you have a bad credit report it will affect your creditworthiness, so it’s better to clear all your unpaid dues before you plan to apply for a housing loan. Other factors that will impact your interest rate would be your income source, job stability, age, number of dependents and fixed monthly obligation.
With internet-based service, things are now just a click away on your smartphone or laptops. Leading aggregator sites bring housing loan quotes of top 30+ banks and non-banking finance companies, wherein you can compare apple-to-apple before you zero in on a particular lender. You compare in terms of principal amount, interest rates, processing fee, loan tenure, eligibility, etc.
To avail finance, you don’t have to run pillar to posts to fill up forms, submit attested copies of documents, and wait to know the loan status. Things can now be taken care of right from your rental homes or offices. There are online calculators as well that would let you know your loan eligibility, interest outgo, and EMI. You can try different combination and pick a suitable EMI option on your housing so that it won’t burn a hole in your pockets. A computer, laptop, tablet or smartphone device and sturdy internet connection is all that you require to apply for housing finance from any part of the country. Ensure you keep scanned copies of the relevant documents ready before you make an application online.
Once verified and approved, you will get a phone call from the respective bank or non-banking finance company to disbursement the money to the builder’s account. It is important that you get an idea about the bank or finance companies reputation in the market, its loan disbursal process, end-to-end solutions, customer service and quick response to resolve the customer concerns.