A home loan is an unsecured form of loan that can be taken to purchase a home or a property. It is an end-specific loan that is taken to arrange a quick fund to purchase a property within a short period. If you are borrowing for the first time, here is everything that you need to know.
Home loan documents:
● Latest 3-month Salary Slips & latest 1-month
salary slip for Guarantors
● Applicant and guarantor’s Form 16 & ITR –
last 1 year
● Copy of employee identity card provided by the
employer
● PAN CARD
● Driver’s License
● Voter ID
● Passport
● Aadhar Card
● If you have a previous loan then loan a/c
statement for the last 1 year along with sanction letter
● Passport-size photographs
● Balance sheet and profit and loss account,
computation of income for last 2 years.
● Income Tax Returns – last 2 years for Applicants
Eligibility to get a home loan
● Credit score: To get a fast home loan approval
you need to have an excellent credit score. A credit score is the
representation of all the credit activities and behavior of an individual. By checking
the credit score a loan provider decides for the approval and denial of the
application. An individual with a bad credit score cannot get
approval easily. A home loan is a huge commitment for a long-term tenure that
an individual with weak credit cannot manage easily.
● Good income: Income is directly related to
repayment. A very good income is expected for a home loan approval. If the
income is not sufficient the loan providers cannot trust the borrower with a
huge amount of money. There are fixed obligations and expenses from the income
and it will be difficult to accommodate a home loan EMI to it. A home loan EMI
will not be a small amount. One needs to increase the source of income to
convince the loan provider and manage his expenses and debt in the right order.
● Property: The right property can increase the
chances of approval. A good builder, an impressive location marks the value of
a property. A loan provider usually recovers from the property if the borrower
defaults on the home loan. So, to keep the chances of recovery open the
financial institutions will be willing to invest only in good properties. Apply for a free credit score check.
● Job stability: Individuals taking a fast home loan should be having some job stability over the years. A good employer and job stability are important for approval. Make sure you choose the right employer and work stably.
What is the rate of interest?
A home loan rate of interest is low, and you can get a good deal when you meet the eligibility criteria. It will be a low-cost deal that you can get by comparing all the available options.
Where can you borrow a home loan?
A home loan is available from banks and non-banking financial institutions. With NBFC you can borrow online and the disbursement process will be instant and smooth.
Finishing up
When you borrow right, you don't need to go through the home loan balance transfer anytime to get a better deal on the home loan.
Must Read: Tips
to Reduce EMI Payments on Your Home Loan
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