Housing Loan

Housing Loan is a very important factor in buying a home. We all get tensed if we have to go for housing loan. Here we will try to release some of your tension by telling you things which you need to keep in mind while going for a home loan.

Amount for home loan. – Normally Bank provides 75% to 80% of the contract value. People think that we should take the maximum loan provided by the bank. But it’s a myth. The more loan you take more interest you pay. People keep amount in FD and ask for more amount of loan. Think this way your FD gives you 8% to 9% interest but on home loan you pay around 10% to 11% that means you are loosing on the interest part. Unless and until you need the cash for future requirement you should use the same to pay down payment. If your down payment is more then you have more chance of loan getting approved.

Appropriate Bank – Different bank provides different services and to some extent different rates. One should carefully analyze the same. Also some banks provide the some personal services, so try to take the benefit of the same. Make sure that you always have the sufficient balance in the account from which your EMI is going.

Repayment and Investments– Before approving loan bank sometimes check the credibility of the person. Make sure that you make your credit card bills and the EMI of any other loans (if any) on time. It gives the confidence to the bank. Bank also looks if the person has done any investments or not. It shows that person is smart enough to save some part of his income. Sometimes banks also ask to keep the investment as mortgage. This will help in fast approval. Be more careful on paying returns. It shows that person is responsible citizen. Believe me all this will help you to great extent.

Joint Home Loan – If required then you can also go for joint home loan with your wife (some banks allow brothers also). It will help you to get more eligibility and as well as more confidence to bank. This will also helps you to get tax gain on principle and interest payment. Both Husband and wife can claim the Tax benefits under section 80c ( for principle) and under section 24 (for interest component).

Different banks have different requirements. To get loan fast try to fulfill all requirements ASAP.

We are always ready for any questions. Please contact us for the same.