Understanding Home loans while buying real estate
Many home buyers especially first-timers, choose the home loan
route as the transaction value is large. There are many criteria that need to
be evaluated and verified before arriving at this decision as the market is
flooded with banks and financial institutions that are keen to offer home loans
to the right customer. A few tips for the home loan process will be helpful:
Save for down payment: For
the uninitiated, down payment is that part of the home property cost that the
buyer has to contribute while buying a home. It is important that this amount
gets saved and this saving needs to begin at the earliest possible. Putting
aside a particular sum of money will add to this down payment amount. You can
arrive at this monthly sum by understanding your monthly budget and savings in
detail.
Also remember the higher your contribution towards the home, the
lower your EMI. Opt for automatic deduction from your savings account to be
transferred to another account to save regularly for the down payment amount.
Put your documents together: The bank or the financial institution that offers the loan for your
dream home will verify your financial status and for this purpose, your
financial documents shall need to be in place. For example, your Income Tax
returns for the past three years, your bank statements, salary
slips/certificates and investment details will be required. If the buyer keeps
these ready at the time of applying for the loan, the process of disbursement is
quick and hassle-free.
Credit : +Ramprasad Padhi
Mumbai Properties
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