Property like own home is a Dream. To buy a beautiful home it required plenty of investments. In normal living its not easy for a middle class officer to buy a home with down payment. By looking into this many global banks provides several home load schemes. A home loan not only helps to buy the property but also it save tax. Home loan is a long term loan. So before applying a home loan plan properly. Think until you clear the last EMI to the bank, your home is a property of the bank. Like the above there are many directions you need to thing before applying a home loan. In this session let us share you the things you need to know before plan your home loan.
Collect more n more Information
To know more about your first home loan start discussing with you friends & colleagues those are already did with a home loan. Listen their experiences & procedures they follow. Note down the documents they provided the time of applying their home loan. Take their suggestion to choose a correct Bank. While visiting the real estate companies collect their contact information’s & brochures. Compare their location, facilities & price range.
Know your maximum loan eligibility
The Loan amount bank will finance you it depends upon you income & credit history. In general home loan providers provides 80% of the value as a loan amount of the property. To know you maximum loan eligibility check with this loan Calculator.
Calculate & plan EMI
As you know your EMI will deduct from your monthly salary. Calculate well to your expenses, status & the amount you are going deduct from your monthly income. As we discussed home loan is a long term loan. While planning you have to think year after year. Some time due to many accidental issues we blocked from our monthly income. Stay prepare for this condition. Don’t miss out your EMI to pay.
Compare the rate of Interest & Loan Tenure
There are several banks provides home loan. Collect the list of them. Visit them in person. Know their facilities & finance structure well. Compare the rate of interest & loan tenure. The EMI depends upon the amount of loan plus loan tenure. Long term tenure mean you have to pay more interest to the bank. Choose the loan tenure wisely.
Read the Agreement Carefully
Agreement is a legal document between two parties. Its a bonding to the deals. Before sign the agreement check clearly to the contents. Keep a note what ever you discussed the time of property review all that need to be their in you agreement copy. In this point if required you can take the help of a lawyer.