For your home loan journey- Helping you to know Eligibility, Rates, process, necessary documents list, EMI comparison and transfer for lowest rates.
Home loan is one of the biggest financial decision in our lives. Before you choose your Bank to get information on current interest rates from all Banks. Get to know how much each bank can give you i.e. Eligibility from Govt Banks and Private Banks.Fixed rate or Floating rate /Prepay or Balance transfer we try to make your journey simple by giving your unbiased information.To find the lender for 20 years term goes through the fine print and save for years to come.A perfect Home loan is loan which gives you lowest rates throughout the tenure, has part payment options and allows you to balance transfer.
Should I take Home loan now or wait ?
Home loan is a long term loan and is taken by customers on floating rates .Rates keep changing and timing on 20 year loan is impossible.
The Home loan rates will change in 20 years so thinking to start a loan at a lower rate has no relevance.
The right time to take a Home loan is when:
- The Property you intend to buy is good and cannot be missed or it is expected that the price of property will rise.
- The EMI that you have to pay per month is above your monthly expense budgets etc.
Home Loan Latest Updates as on April 2016
- SBI Home loan starts from 9.40%
- HDFC Ltd New Rates – 9.40%-9.45% for New & Existing Customers
- ICICI Bank New rates – 9.40-9.65 % (For Female), 9.45-9.70%(For Others) effective from 13 April 2016
Home Loan – Lets us Explain how this will go about and what are the Steps
The first step involved in the process is to find your property which is followed by the verification of property documents, post that the documents are examined & simultaneously you can start searching for the lender who can offer the BEST Home Loan Deal after checking your eligibility criteria.
Know the Home Loan Eligibility: Banks offer the loan amount based on your Income and the property value .They will give you max amount in which your emi of Home loan and others loans is 50-60% of your income.
Another factor is that value of property.
Select the Best Home Loan after evaluation: Comparing home loan interest rates is the primary feature in the home loan selection, however, other fees & charges like Application fees, processing fees, legal charges should not be neglected when comparing various loan offers. To check the interest rates & other charges incurred by various banks, Deal4Loans has brought in a Home Loan Comparison Chart across various Banks.Banks offer Fixed and Floating rates in Home loans.
Most customers choose Floating rates
Applying for the Loan : After you have selected your lender, you have to fill in the application form wherein the lender requires complete information about your financial assets & liabilities; other personal & professional details together with the property details & its costs.
Documentation & Verification Process: You are required to submit the necessary documents to the bank which will be verified together with the details in the application.
Credit & default check: Bank checks out the borrower’s loan eligibility (through repayment capacity) & the amount of loan is confirmed. The borrower’s repayment capacity is reached which is based on the income, salary, age, experience & nature of business etc. Bank also checks credit history through the Cibil Score which plays a critical role in deciding & approving your loan application. Low Credit Score implies that the bank upfront rejects your application on the basis of earlier credit defaults; on the other hand, high credit score gives a green signal to your application.
Bank sanctions Loan & Offer letter to the borrower: After the credit appraisal of the borrower bank decides the final amount & sanctions the loan, the bank further sends an offer letter to the borrower which constitutes the details like rate of interest, loan tenure & repayment options etc.
Acceptance Copy to the Bank: The borrower needs to send an acceptance copy to the bank after the borrower agrees to the terms & conditions in the offer letter.
Bank checks the legal documents: The bank further asks the legal documents of property from the borrower to check its authenticity so as to keep them as a security for the loan amount given. The next step involved is the valuation of the property by the bank which determines the loan amount sanctioned by the bank.
The signing of agreement & the loan disbursal: The borrower signs the loan agreement & the bank disburses the loan amount.
Documents required in Housing Loan
Generally, the documents required to processing your loan application are almost similar across all the banks; however they may differ with various banks depending upon specific requirement etc. Following documents are required by financial institutions to process the loan application:
- Age Proof
- Address Proof
- Income Proof of the applicant & co-applicant
- Last 6 months bank A/C statement
- Passport size photograph of the applicant & co-applicant