Importance Of Choosing a Home Loan That Suits Your Needs

The home loan is a long-term financial aspect, and you desire it to fulfill your dreams. Before you get into the venture, there are some essential things you should know about. They are provided to you in this article.

Interest rate:

The interest rate is imposed on the lowering loan amount balance. Currently, home loan interest rates are between 75 to 11%, with a discount to women borrowers.

Loan amount:

The loan amount one can borrow depends mainly on two factors. They are the value of your property and your income. Banks only give the amount that is equal to 70-725 of your property.

Some lenders can give more than 80% also. In any particular situation, home loan EMI’s can be up to 40% of your income.

The bank will also check your repaying capacity by assessing credit and cash inflow. It will also decide the amount of the Home loan.

Processing fees:

These are the expenses that happen during the process from applying for a loan to the bank that lends the loan. The costs occur when you apply for the loan, and the bank has to process the application. It will also include payments for assessing your property and verification of your details. The processing charges are between 0.25% to 1% of the borrowed amount. That means that processing fees will alter with your borrowing amount.

Home loan eligibility:

Usually, the applicant should be of minimum 24 years of age and a maximum of 60 years to be eligible for a home loan. If you fall under that age category, your income should be 25,000 rupees in a metropolitan city; otherwise, it is 20,000 rupees. For a self-employed person, it is near 35,000 rupees. The loan amount one can apply for varies with the bank and other eligibility criteria. There are other criteria also to differ with the loan-providing organization. 

Pre-approved loan quote:

When you are thinking of buying a property, you know that the process will take more time. In the meantime of your property hunt, you can apply and get a pre-approved loan. While you are still looking for the property, the bank will assess your income and repayment capacity and approve the loan. This is called in-principle loan approval. Then only verification of the ownership of the property remains, which is done before giving you the loan amount. 

When you are applying for a home loan, look beyond the quintessential financial aspects like the availability of the lender. GCC Home Loans is a company that will provide you with safe and secure home loans.

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