Home loans Explained:
Everybody dreams of having an own house, due to multiple reasons or constraints only few people can afford to build a house of their choice and size. Taking home loan is one of the ways to build your dream house. There are three parts for getting the home loan from lender to borrower. The first is filling the applications along with all the necessary documents. Second is getting the loan sanctioned depending on your asset value, age and repay capacity. Third is the Disbursement of the loan to borrower from lender. You can even calculate your emi using homeloan eligibility calculator.
Tips before taking loan:
Before you apply for a home loan do some ground work on how much loan can you afford to repay, your current income and cibil score. Compare interest rates and costs of different banks which are ready to give you loan for your home construction. Select a good land for the construction of your home and buy the land, consult realtors and gather all the original documents. After all the above steps, you can sign for the loan and close the loan deal. Homeloan eligibility calculator can be used to calculate all the repayment structure and interest rates.
Different home loans:
Basically, home loans are used to purchase or construct the property. There are different types of loans given for property needs.
Home Construction Loan:
This type of loan is given for an existing land or property to construct a new home on top of it.
Home Purchase Loan:
This type of loan is used to buy a new property or buy a new home which is ready to move in.
Home Improvement Loan:
This type of loan is given for the borrower for renovating or repairing an existing home.
Home Extension Loan:
Extension loan is given to the customers who are willing to extend and expand their existing home, or can be used to add extra rooms for the existing property.
Home Conversion Loan:
This kind of loan is given to the borrower who already took a loan for his home and is willing to move in to new home. The old payments are added to new one and loan is disbursed.
Land Purchase Loan:
As the name indicates the loan is given for the purchase of new land or property.
Bridge loan is given for people who wants to sell their old home and buy a new one. The bank will provide the loan to buy a new property while you can find a buyer for your old home.
These are the different types of Home loans that are provided for various needs of customers. One can use homeloan eligibility calculator to manually calculate the interest rates.