Property Advices |
How to buy home Online ?
The exercise begins with property selection. It is extremely necessary to do a check on the reputation of the builders associated with the project. Irrespective of whether you are investing in a resale property , a ready to move flat or an under construction project, make sure that the title deeds relating to the property are in place. Check if the property is available on power of attoey or pugree basis.
Then searching for bank for applying loan facility which will make your dream come true. While budget considerations always dominate your decision of buying a property, it is also good to have an idea of the extent of finance banks may offer. The loan amount sanctioned depends on three important factors:
1)Your income
2) Repayment history and
3) The cost of the property
Based on a broad and general set of calculations, you can get up to 3.5-4 times your annual gross income as home loan. Irrespective of the basis of calculation, the loan eligibility for a longer tenure loan will be much higher. Banks have different ways to calculate your loan eligibility.
If loan eligibility based on your income is likely to be an issue, then talk to several banks to find out which bank can give you the maximum amount. It may so happen that based on your own income, as well as your spouse's, you may still not be eligible to get the amount of loan that you require. Then you must seek a bank that allows you to club the incomes of your other close relatives (parents, siblings, children etc) to increase your loan eligibility. Banks offer home loans on fixed or floating interest rates. Irrespective of the option you have chosen; remember this is not a one-time decision. Once your application is accepted, your interpersonal communication with your bank begins which entails your assessment regarding loan repayment capacity. The bank will give you an offer letter informing you of the following; loan amount, interest rate (fixed or floating) tenure, repayment mode and the general terms and conditions. You will be asked to sign on, on a copy of this letter as your acceptance.
In insurance parlance, an insurance policy which covers a home loan is known as 'loan cover term assurance policy'. This policy covers the home loan amount taken in case of an unfortunate event such as untimely demise of the borrower. The cover on such a policy keeps reducing with the amount of EMIs paid. So, the loan amount covered reduces with the loan amount outstanding.
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