5 Tips for Taking Home Loan in India.

Planning to buy your dream home? It is not always possible to have so much savings or ready cash for purchasing a home. Thanks to the facility of home loans that give us the opportunity to own our dream home. Many banks and financial institutions give us tempting offers to avail loans in the real estate market. However, one must be careful to collect all the related information before opting for any offer for loans. It is crucial to understand all the factors, terms and conditions of repayment. Once you make up your mind, the next step is getting the money. Getting a home loan may appear a challenging task, but it can be made simple by keeping a few points clear in our mind.

Affordability

People usually get emotional when it comes to their homes. However, the decision of buying one should be out and out practical. The purchase of your dream home should not make a hole in your wallet. Thus, you must check beforehand whether the down payment and the EMIs are within your range or not. The down payment you decide to shell out should be planned in a way that you still have the money to meet any emergency, while the EMIs should be planned as per the basic rule of not exceeding 45% of your total income.

Deciding on the Lender

Since the loan taker is the customer, the option of choosing from the lenders is in his court. So, one should do enough research to decide on the bank or the financial institution. Keep in mind that don’t go by the offers of just one, but consider at least 5-6 companies before making your decision. Do check the terms and conditions they are offering and what exactly suits your requirements. While evaluating the lenders, consider both quantitative and qualitative aspects of the loan. For instance, the interest rate is important and may not vary much between the banks but the customer service, internet banking facilities and other such features may differ extensively. You must consider these things as you have to manage with them for the rest of the loan tenure.

Interest Rates

First of all, people obviously look for loans that come with lower interest rates. During festival season, many banks and institutions offer home loans at discounted interest rates. Before making any decision, you must cautiously check as well as have the clear understanding on the calculation of interest rates. Now the question is whether you’ll go for fixed or variable interest rates. As we know fixed rate of interest is generally higher, the monthly EMIs would obviously be higher. So, it is always better to go for variable or floating rate of interest on your loan. Keep a check of the interest rate trend. If the interest rates have drastically increased in a short span of time, you need to reconsider your decision as it may increase your future EMIs considerably. For this, it would be better to have a timely follow up with the bank so that you can save on interest, when the rate changes in your favour.

Loan Tenure

Usually people tend to go for the longer tenure seeing that the EMIs are more affordable. However, it also means that you finish off paying more interest. Consequently, your dream home becomes more expensive. For people who have started working, it is apt to choose long tenure as affordability would be a major concern. There are chances that you pay EMIs before the time. In later years of working life, it gets difficult to manage long tenure loans.

Credit Score

Before approving the loan, every bank or financial institution checks for your credit score. Credit score is the score card of your financial life until now. With this, the bank reviews your financial credibility and the risk associated with their loan payment. A bad credit score will get you nothing, thus letting your dreams crashed. That's why it is important to know your credit score from the CIBIL website. It will help you to fix any mistakes in the score.

Though home loans offer a nice opportunity to buy homes without ready cash, it is up to you to understand the terms and conditions associated with it to enjoy the advantage and save money. As you take a home loan, you are entering in a long term relationship with your lender.

Taking a home loan entails a long term relationship with your lender. Hence, keep these pointers in mind while you hunt for the right home loan for your dream home.

{Source: http://www.deal4loans.com/home-loan-planning.php}

Importance of the housing loans.

In the metro cities there has been a 30 % rise in the property rates since the last two decades. Despite the high price people want to buy their own house.  The process of buying a house is quite difficult if you are buying a house completely on your savings or your income. There are traditional finances which have been offering loans also there are personal loans available but they do not offer flexibility in the tenure of the repayment and interest rates. Home Loans are given by various banking and non-banking financial institutions across India.

The housing loans are available in the market at a lower interest which can range between 9-10 %. The processing fee which differs from bank to lending organizations ranges between 1-2 % of the loan amount. These home loans also provide flexibility in the interest rate and the tenure of the repayment of the loan. However the amount of the loan which is sanctioned depends on various factors like the age of the property, the location of the property, the age of the property while sanctioning the loan, the age of the property at the maturity of the loan. However the interest rate plays a vital role in the home loans as lower the interest rate the more affordable the loan is for the common man. The interest rate also determines the equated monthly installment the person has to pay every month to the bank. The EMI is the specified amount a person has to pay on a specified date every month. The EMI of the Home Loans should not exceed more than the 30-40 % of your salary as you will feel burdened by the loan.

Buying your own house is the biggest accomplishment of anyone’s life. It is also the largest investment portfolio also there is a sentimental value attached to it. Buying a home loan requires long term commitment. Hence, see to it that the interest rate for the housing loan you have availed is less. The best way to manage the borrowing is actively manage your home loans. Banks and the non-banking financial institutions often provide the new customers lower interest rate than the existing borrowers. Even a 0.5% of the reduction in the interest rate can help you save a lot of money by making the loan more affordable to the customers.

There is special concession for women candidates who are offering home loans. These home loans are customized specially for the women candidates.  Nowadays a person can simply visit the website of the bank or the non-banking institutions fill in the required details for availing for a home loan. You don’t need to manually visit the lending institutions. You can simply visit the website and apply for the loan. The customer care executive will contact you and tell you about the details. Before availing for a home loan it is always better to compare them online. Compare the interest rate offered by various lenders and the tenure for the repayment. This will help you in availing a best kind of loan which best suits your needs.

Home Loans: Realize Your Dream Of Owning A House.

If you are looking for finance to help you buy your house, then the world of banking makes available to you numerous options that enable you to do so. A home loan has two basic connotations. It is a loan taken to buy a house or a loan taken by keeping your home as a security to pay an outstanding debt. A home loan in America is commonly referred to as mortgage. It generally refers to debt, which is secured by the mortgage. Taking home loans presents some calculated risks. When you pledge your property as security, then you stand to lose it if you cannot repay the loan. This is unimaginable risk. But at the other end of the spectrum, these loans are generally low risk for the lenders. Money lending organizations give borrowers an amount, only if they know that the concerned person has sufficient financial ability to pay back the borrowed amount.

In many countries, people fund the purchase of their homes with the help of mortgages. The market for home loans has developed significantly in countries, when there is an increasing demand for home ownership. This scenario is largely prevalent in countries like the United States, Great Britain and Spain. Though the legal jargons and terminologies are different in each country, the whole concept of home loans and the home loans process remains the same.

There are two integral components of a home loans namely, the creditor and the debtor.

Creditors include banks, financial institutions, insurers and other such organization that provide loans for the purposes of buying real estate. Creditors have a legal right to the debt that has been secured by the mortgage taken by borrowers. The debtor is the borrower. He must confirm to, and meet all the loan conditions laid down by the creditor. Debtors include individuals and businesses who want to purchase property. Taking home loans is a complicated business and there are various other participants that are involved in the process.

These might include the likes of lawyers, solicitors, and conveyances. At times, debtors, approach professionals like mortgage brokers, and financial advisers, who refer them to the best creditor who can satisfy their home loans requirements. The various types of home loans include package loans, hard money loans, and term loans, amongst others.

The banks and various other money lending organizations take into consideration various factors before approving your home loans. The most important evaluation factor is the inherent capacity to repay the loan. This in turn is decided by taking cognizance of various points like income, employment, qualification, assets, liability, stability, and the number of years spent at the present residence, and of course the savings history.

It is only after going into this information in some detail that you get the much anticipated nod from your lender. Taking a home loan primarily requires a good credit history. But, more and more options are increasingly becoming available to those who dream of taking a home but have a poor credit history. So do analyze your needs, evaluate your options, and then go for the home loan that can best suit your requirements.

{Source: http://ezinearticles.com/?Home-Loans:-Realize-Your-Dream-Of-Owning-A-House&id=307944}

Know Why Women Got Preference in Home Loan Application.

To make women financially dependent and socially strong, financial agencies including Banks took some major steps. It includes special discounts, concessional rates and also special schemes to promote women to buy a house by getting easily available home loans.

Being an owner of your own house gives a sense of financial security for both genders. Since our society is not women-centric and it requires women empowerment, Banks are offering loans for women applicants with attractive benefits and schemes that are exclusive for women only. To promote Home Loan for Women different banks are coming up with lucrative schemes for ladies that are the primary or sole applicant and primary or sole owner in case of joint ownership of the house.

Here are the reasons why women should apply for home loan.

1. Higher Chances of Loan Application Acceptance – Every Bank or loan providing organization has a process to analyze the loan applicant. It involves the eligibility criteria decided by the lender, required documents submission and also applicant should have a good CIBIL rating. A credit score is a way to that banks uses to measure the risk involved with the applicant. A good CIBIL rating (credit score) simply means a less risky borrower. Statistically, it is seen that women are less risky borrowers as compared to men when repaying EMI. Therefore women as primary applicant, with correct documents and a good CIBIL score tends higher chances of getting their home loan approved.
2. Lower Interest Rates as Compare to Loan Applied by Man – Interest rate is the major element in any loan. The home loans involve huge amount and their repayment duration is also longer, a slight change in the interest rates can cause a heavy burden on the borrower. Recently most banks coming with offers, like SBI bank has a special home loan scheme called ‘Her Ghar’, HDFC Bank offering Home Loan for Women called “Women Power”. Similarly, ICICI Bank and LIC also offer home loan for women at concessional rates.
3. Lower Stamp Duty – Stamp duty changes state to state as it is decided by the state government. Many Indian state governments have lower stamp duty for Women applicants who are looking for Home Loans. Usually, the difference between stamp duty for women applicants and men applicants are up to 2 percent. It looks smaller but for a loan amount of 50 Lacs, the relief of 1 Lac is huge for anyone.

There are many developers and builders and also offers special discounts and time bound schemes that are primarily designed to empower women to buy a house. In the sale of plots by the government through the lottery system, women get special privileges as well.

In my perspective, it is a good way to motivate women by offering them special privileges and let them fulfill their dream of having their own house.

In case you would like to know more about the benefits women can avail while applying for home loans, you can ask your questions to our experts at Banknomics.

{Source: http://www.banknomics.com/blog/know-women-got-preference-home-loan-application/}

Home Loans Right Approach to Become a Homeowner.

Home Loans at attractive interest rates from HDFC Home loans. Best home loan rates for women and salaried individuals. Avail home loans at low processing fees.

WHAT IS IMPORTANCE OF THE HOME LOANS EMI CALCULATOR.

The home loans EMI calculator as the name suggests will help you understand the regular EMI payable to the bank on the purchase of the home loan. Earlier calculating the EMI was a tedious task as it has huge amount involved and there were manual errors due to the manual mistake.  As the manual task was involved it was also time consuming the errors would affect the EMI payable.

Home loans EMI calculator has thus simplified the process of calculating the EMI. You can now just calculate the EMI payable with the help of your principal loan amount, the interest rate charged on the loan, the tenure of the loan.  Your equated monthly installment is also a partially decided on the tenure of your loan. The more the tenure the less will be the EMI per month. It is the specific amount you need to pay every month on a specified date.

With the help of the home loans EMI calculator you can get a rough idea of the amount you need to pay every month so that you can plan your monthly expenses accordingly. The EMI should not be more than 30-40 % of your salary as it will create problems and lead to financial contingencies in your monthly budget. Hence, you should not feel burdened with the loan.

What are the loan parameters that are used to calculate the EMI?

The simplicity of the home loan EMI calculator is that it is directly related to minimal inputs and it customizes the results as per the inputs.

• Enter the principal loan amount. If there is a slider adjust accordingly on the slider.
• Then enter the tenure of the loan. Or adjust the slider accordingly on the year scale.
• The value of interest rate must be inserted or adjusted properly in the designated box. The entered value is in respect to the percentage you need not insert the percentage sign. A slight mistake can cause error in the entire calculation.
• This value is in respect to the loan amount it can be 1-2 % of the loan amount or as charged by the respective bank. If you are not sure about these values while the input contact the customer care executive or go through the website for the same.
• Many of the home loan customers opt for prepayment of the loan. This point is also considered in the home loans EMI calculator.

It is obvious that the question will arise is why use the home loan EMI calculator?

The answer is that the EMI calculators save time, energy and give you a clear insight into the picture. Apart from this the following are the advantages of the EMI calculators.

• The boring calculations are simplified and solved within fraction of seconds, without any errors.
• The EMI calculators are simple as normal calculators so that you can use them feasibly.
• You can set the slider as per your convenience and check the EMI payable. You can also set the slider to test various combination of interest rate and tenure of the loan to avail for a right kind of loan.
• The home loans EMI calculators a tool that is absolutely free you don’t have to pay any extra charges for it.

Home loan seekers: Key things to keep in mind.

The problem of stressed loans and NPAs in the banking sector has aggravated, so the banks are now more cautious about disbursals, and verify thoroughly whether borrowers can pay back the loan. Banks are going through the loan applications more cautiously these days.

With a rise in the property prices and rise in people’s aspiration to have their own dream home, the demand for home loans is also rising. As per the experts in real estate sector, home loans contribute nearly 9% to India’s gross domestic product (GDP).

The problem of stressed loans and NPAs in the banking sector has aggravated, so the banks are now more cautious about disbursals, and verify thoroughly whether borrowers can pay back the loan. Banks are going through the loan applications more cautiously these days.

Borrowers need to take care of following things to get the home loans approval from the banks easily:

Credit score: Banks often look at credit score of loan applicants, since the score speaks about applicant’s repayment habits. Usually, credit score above 750 is considered as a good score. Home Loans seekers should maintain a good credit score before applying for a loan.

Age and eligibility criteria: Home loans applicants should thoroughly go through the eligibility criteria of banks before applying for loans, since different banks have variety of eligibility criteria. If a bank does not find a loan applicant suitable enough for availing a loan, then it can reject the application.

Stable income source: If an applicant is working in the private sector, then the banks usually prefer those applicants who have been working in the same organization for past two to three years. The applicants working in chemical factories which are considered as life threatening would reduce the chances of approval of loans.

Seeking loan for an old building: Some of the banks may not approve loans if they find that the related property is aged considerably. For such loan applications, applicant may have to pay larger amount as the down payment, otherwise the loan application may get rejected.

{Source: http://www.blog.loanmoney.in/home-loan-seekers-key-things-keep-mind/}