The property market is vast, showcasing a large number of homes at different prices. What you will notice is that these homes have high-quality living facilities, making them well worth the purchase. Hence, investing in one right away provides many benefits. You will be able to own an attractive property purchased at a low price. The kind of living facilities it offers enables you to gain an elevated quality of life. However, it is often not possible for people to pay the entire home price upfront, and hence look into home loans to make a purchase.
How to Get A Home Loan?
The steps involved in getting a home loan are simple. Just fill up the loan application form and submit it along with the necessary documents and photos. These will be checked by the lender. An evaluation will also be done on the property that you are considering purchasing by the lender’s authorized evaluator. After satisfactory reports on this, the loan amount will be sanctioned. You can proceed to make a property purchase after which your monthly EMIs will start. The lender will provide only 80 percent of the property value as a loan, and the remaining has to be borne by you.
Different Types of Home Loans
When you look into home loans, what you will notice is that there are so many types that can be availed. Check out on what your options are and then proceed to take a loan. For example, loans are available for buying just land, while there are others for buying a property, still others can be availed for getting home renovated or extended. Look for a loan that serves the purpose you have in mind and then proceed to filling and submitting your application form. Here is a look at the many types of home loan products that you can consider:
- Loan for purchasing land – This is sanctioned for the purpose of buying open land with no structure on it.
- Loan for a home purchase – It is given for the purpose of buying a home property such as an apartment or a villa.
- Loan for home construction – It is given to people who want to build a home on land which they own.
- Loan for home extension – It is offered to meet expenses for extending the home by adding another room etc.
- Loan for home improvement – It is provided when the need is for making changes to the home and renovating it into a more modern living space.
- Loan for NRIs – This loan is provided only for non-resident Indian.
You can get a low home loan interest rate by specifically looking for a lender who charges less. You can also get a low-interest rate by making a large down payment else by making partial payments during the loan tenure. In either of these situations, the loan amount reduces hence the amount that you have to pay as interest also comes down. It should be noted that you can get tax deductions on home loan interest under Section 80 C of the Income Tax Act.