7 Steps to get a Home Loan in India

7 Steps 7 Steps to get a Home Loan Mr. Karthik has decided to buy a house and wants to go for a home loan to purchase the property. Below are the steps he takes & the factors he considers to get the the best deal of his life. 1. Calculate the Loan Amount Required After zeroing in on his dream home, Karthik listed down the following steps to raise finances. By this time, he already 10,000,000,00! knew how much his home would cost, and the additional overheads that may arise with this. TO DO LIST: 1.Check how much Money you can raise on your own your assets and salings by liguidating 2. Look for the best deals in the Market 2. Then calculate the loan amount reguired Karthik, now started his spade work and scanned the market for the best home loan options available. The parameters he examined were interest rates and tenures, depending on the nature of the bank-natioanlised, private or cooperative. TO DO LIST: 1.Research on the internet for the best home loan deals, keeping in mind factors like interest rates, tenure, pre-closure etc. 2. Approach your local bank for the best offer, if you think yoU can get more options, elsewhere, do not hesi- tate 3. Negotiate the final amount that is required for this loan (Total cost of property - Money in hand = Loan amount reguired) 4. Finalize the type of interest rate fixed or floating 5. Negotiate to reduce the interest rates and extend the tenure to your preference 6. Shortlist banks and finalise the one 3. Dig deep and under- stand the complexities of the home loan you want to go with. There are quite a few factors that Karthik needs to look into before committing to a home loan. Reading through the loan agree- ment and understanding the clauses was es- Terms nd APue Condi Li sential for him to become aware of how these clauses apply in different scenarios. TO DO LIST: Factors to be taken into consideration: 1. Interest rates 2. Maximum loan quantum 3. Loan tenure 4. Pre-closure charges S. Terms and conditions 4. Arrive at a comfortable EMI Hush! After all the spade work, evaluating and re-evaluating all the options, Karthik now feels that he has arrived at an EMI, which is not very heavy for him. 1 TO DO LIST: %3D Parameters to consider for arriving at an EMI: 1.Current salary 2. Projected appreciated salary or income for the next 20 years 3. Projected overhead expenses for the next 2O years 4. Current SOurces of income - 4 ( マ single or multiple s. Šingle income for the next 20 years 6. Ability to sustain the EMI burden, till the end of the tenure or multiple Sources of 5. Documents needed for applying the Loan All this while there was another nagging worry Karthik had. It was the documentations, attesta- tions and the likes. TO DO LIST: Document checklist for home loan application (personal): 1. Last 3 month's salary statements 2. Last 3 month's bank statements 3. Copy of PAN card 4. Address proof s. IT returns 6. Same for the co-appli- goes cant, if any Documents from the developer: 1. Sale agreement 2. No objection certificate 6. Do not overlook, bank's processing charges Karthik was quick enough to understand that that the bank or any vendor wouldn't render these pre- liminary services for free. These consultation ser- vices come at a nominal percentage of the loan amount, not exceeding Rs. I0,000/- TO DO LIST Be mentally prepared for this overhead expense! 7.Get the Sanction letter and Celebrate! Karthik was through! The loan is sanctioned and he can start plan- ning to look at things that matter to him like his family in their brand new home. HELLOME vakil HOUSING DEVELOPMENT CORPORATION Brought to you by Vakil Housing. We Build Beautiful Properties that give you a fantastic Return on Investment http://www.vakilhousing.com