Have you taken the plunge of buying your own house after a lot of thought going behind it? Going for the right home loan is the most important thing for you to not encounter any unpleasant surprises later on.

With the property rates touching the sky, prospective property buyers often plan of taking home loans to buy their dream house. A beneficial home loan is a win-win situation for the buyer as it not only helps you buy your own house but it also helps you save a lot on taxes. But taking a home loan requires a lot of research and understanding so that you do not have to regret after taking the loan. Those wanting to go in for a home loan should be aware of the basic tips to be kept in mind while taking a home loan.

Conduct a proper research:

You may be getting many calls for home loans with flowery rates and additional schemes, but every loan has ‘conditions apply’ criteria about which one should be educated. Clarify all your doubts regarding home loans and do not hesitate to ask any question from the sales guy even if you think it to be irrelevant. The irrelevant point then may actually be a major point later on.

Calculate the EMI:

When you take a loan, you should be aware of the EMI that will be cut every month from your account. You should take this decision by keeping your current income and your monthly expenditure in mind. Take careful decisions as if at all you default in paying the EMI, the penalties are not that easy to pay.

Get to know the interest rates:

Every bank has different interest rates which is a major point in going in for certain banks for taking a home loan. Some banks offer extremely high-interest rates, making them not an apt choice for home loans. Also the agents do have certain leverages that they give to their clients in terms of interests on home loans. Negotiate well with the bank and get the most amounts of benefits.

The eligibility for taking loans:

There is certain eligibility criteria that one needs to fulfil to take a home loan. You should have all the documents handy and the history of your purchases. If you have a clear history of paying all taxes, EMI and other payments on time, getting a home loan becomes even easier.

Rakesh Madaan, a loan consultant said, “The individual should have all the documents ready before hand so that there is no end moment running. If the person applying for loan has all the needed documents, the procedure is very easy and fast.”
BOX: Documents required.

Most of the banks ask for the below-mentioned documents for home loans

• Income proof
• Age proof
• Identity proof
• Address proof
• Employment details
• Proof of educational qualifications
• Details about the property if finalised
• Bank statements

Procedure of taking a home loan

Following are the step by step procedure for applying and taking a home loan.

Application:

You will have to take the application from which you wish to take the home loan from. Proofs like address proof, age proof, proof of income, bank balance, etc are to be furnished with the form.

You will have to take the application from which you wish to take the home loan from. Proofs like address proof, age proof, proof of income, bank balance, etc are to be furnished with the form.

You will have to take the application from which you wish to take the home loan from. Proofs like address proof, age proof, proof of income, bank balance, etc are to be furnished with the form.

You will have to take the application from which you wish to take the home loan from. Proofs like address proof, age proof, proof of income, bank balance, etc are to be furnished with the form.

Discussion and bank’s investigation: After the form, the bank evaluated the papers and investigates whether all the proofs presented are authentic. Also the purpose of the loan is discussed with the financing body.

Credit decision by the bank:

The bank then sets an amount based on your credit, income, qualification and job. If not feasible, the bank may also cancel the application.

The bank then sets an amount based on your credit, income, qualification and job. If not feasible, the bank may also cancel the application.

The bank then sets an amount based on your credit, income, qualification and job. If not feasible, the bank may also cancel the application.

The bank then sets an amount based on your credit, income, qualification and job. If not feasible, the bank may also cancel the application.

The bank then sets an amount based on your credit, income, qualification and job. If not feasible, the bank may also cancel the application.

The bank then sets an amount based on your credit, income, qualification and job. If not feasible, the bank may also cancel the application.

The bank then sets an amount based on your credit, income, qualification and job. If not feasible, the bank may also cancel the application.

Letter by the financing company:

Once everything is verified, the company gives a letter stating the following points like loan amount,

Once everything is verified, the company gives a letter stating the following points like loan amount, rate of interest, tenure and mode of payment, terms and conditions, ROI and any special conditions.

Legal check:

The individual has to then submit the documents which are verified by the bank where the property documents are to be submitted.

Check by the financing body: They also visit the property once to check whether it is abiding by the current rules and regulations.

Registration of the property documents: Once every step is complete, the documents are to be registered and stamped by the lawyer.

Signing of agreed and giving post-dated checks: Once the loan agreement is signed, those many signed post-dated checks are given to the financing body of the specified date on which you want the EMI to be cut.

Payment:

Once everything is found error-free, the financing body gives away the amount either in part or full payment.