Getting a home loan is not that easy as it is being touted from TV advertisements, hoardings, radio and from other media. Although, it may seem like that the banks are so eager to give youa home loan but the thing is that the said is much easier than getting that deal in hand! Seeking a home loan is similar to get into any other financialdeal which has a myriad of difficulties and nasty surprises too. And therefore it is necessary to look thoroughly to the facts that how home loans work and how to achieve it properly to avoid the future hassles. And down here are some important points that are needed to take into consideration before signing the deal.
Calculating home loan:
This is one of the imperative parts in the complete home loan procedures. Presently, most of the banks have their own set of rules in terms of sanctioning the loan.But the common things that they check for, are- the monthly income of the borrower, liabilities with other companies (if any), financialcommitments etc. And apart from that there are also some other factors that come into the game with each different bank. Most of the banks draw the limit of instalmentsat 40% to 50% of the borrower’s salary. Hence it is suggested that to check by own to all these facts instead being rejected bybank..
Types of loan:
There are mainly two types of loans available in banks. One id floating loan and another is fixed. As the name suggest, in floating loan the interest rate varies depending on the market growth and demand and other hand the fixed loan has fixed rate of interest. Although the second one sounds quite interesting, but most of the eminent financial panel suggest selecting the floating one. As it has been seen,with the volatile market nature, the housing rate comes down mostly in the long tenure loan process. Therefore, before signing on the dotted line make sure which type is suitable for you.
Do not forget to negotiate:
No matter you are going to get the loan from a Government sector or from a private one. Especially, if you are heading to any private bank forloan, never forget to try a bit haggle to them. Always remember that the bank has some of upper hands so that they can cut off a bit from your interest rate. And if you are the old customer of their company they can certainly give you special privilege in that case.
Loan payment period:
Loan payment or clearing debt means that the period which is needed to repay the amount you have taken within interest. The time of clearing the debt depends varies from bank to bank. But, the common rule is that there is as specific time to clear that amount with interest and they cannot extend it after that given time. But one should keep in mind that the longer the time the greater the amount they need to pay with interest. Therefore it is advisable for them to plan for the amount and ensure their capability to pay that with interest and ofcourse within time, so that they can avoid the false positionin future.
So, if you have plans to start a property business and that too in famous states like Maharashtra, where you will buy a property to give it a rent as PG in Mumbai or any other place, these upper mentioned points will help you before applying for property loans.