Here’s Everything You Need To Know About A Home Loan
The world we are living in is not a very affordable one. And that’s why owning a home is a distant dream for the common man. If you are in a similar situation and really want to be a homeowner, your best option would be a Home Loan.
A Home Loan is a facility through which a borrower can get the required amount of funds from a financial institution and pay it back in the form of monthly installments. These monthly installments are popularly known as EMI (Equated Monthly Installment) and comprise a part of the principal and interest amount.
Taking a Home Loan is the most popular way to acquire the necessary funds to buy a house. So, a majority of homeowners usually start their journey with a Home Loan. Experts believe that the compound annual growth rate of the housing finance market will increase by 20.58% from 2022 to 2027. The two main reasons for this whopping growth are rapidly increasing urbanization and mortgage rates that are easy on the pocket. It is also believed that 27% of the applicants are young borrowers below 36 years of age
Explore everything you will need to know once you decide to borrow a Home Loan.
Factors affecting your Home Loan Eligibility
• Income: Your monthly income gives the lender an idea of your financial ability to pay back the loan amount. A stable and steady monthly income plays a positive role in increasing your Home Loan eligibility.
• Credit score: Your credit score helps the lender decide whether trust can be placed in you. A good credit score tells the lender that you are consistent with your payments and a reliable borrower, so they are likely to approve your loan.
• Current debts: If you already have too many debts and existing loans to pay off, it certainly reduces your eligibility because the lender knows you are financially bound elsewhere to pay off EMIs and are likely to get overwhelmed with payments.
• Employment: A stable job is a good sign, as it helps the lender trust you with repayments. Similarly, in the case of a self-employed person, the bank will trust you as a borrower when you have a consistent and steady business and not an unstable one.
How to apply for a Home Loan
Before you apply for a Home Loan, it is very important to check everything with a Home Loan rate calculator. You can check things like your monthly EMI, loan tenure, Home Loan interest rate, etc. using a Home Loan rate calculator. You can apply for a home in the following three ways:
• Online through the website: Visit the website of the lender you want to borrow a Home Loan from and go to the Personal Loans section. Click on "Apply Online". Fill out your form and upload the documents. Submit your form once you
have checked all the details you filled in.
• Online through the app: Install the lender’s app on your phone. Sign in using your credentials and apply through the loan application section. Upload your documents and submit the application.
• Offline in the branch: Visit the nearest branch of your lender and fill out a hard copy of the loan application form. Submit copies of your documents to the bank.
Repayment of a Home Loan through easy and convenient EMIs allows you to enjoy the privileges of owning a house as well as living stress-free. The Home Loan facility has helped millions of people make their dreams come true; now is your chance to make your dreams a reality.