Kind of Home Purchase Loans Interest Rates:
Fluctuating Home Purchase Loans Interest rates: Keep changing with change in the prevailing market rate or the prime lending rate.
Fixed Loans Interest Rate: As the name suggests, do not change during the entire loan period, irrespective of the prevailing market rate. generally fixed loan interest rates are higher than the fluctuating loan rate.
The current scenario in India is that of declining interest rate, so a fluctuating interest rate makes more sense. The loan is repayable in the form of equated monthly installments (EMI). The EMI should not exceed 50 per cent of your monthly household income.
Interest Rate on Home Purchase Loans:
Home Purchase Loans interest rates depend on a number of factors :
The tenure for which the loan is taken
Loan amount
Type of housing loans taken
Type of customer and his repayment capacity
Loan policy of different companies. Interest rates will be different for private sector and public sector players. Companies lower the interest rates during festive seasons.
Maximum Home Purchase Loans Given Depends On:
Individual loan policy of different companies. The maximum amount of loans given is however 85% of the value of the property (inclusive of cost of land)
Repayment capacity of the customer
Maximum term of home purchase loans
The term of home purchase loans offered is maximum 25 years. This again depends on the repayment capacity of the individual
Number Of Loans Applicants:
A loan can be taken either on an individual or joint basis. Some companies necessitate that proposed owners be co-applicants, however, co-applicants need not be co-owners.
Other Home Purchase Loans Costs:
Besides the interest rate, customers also have to bear the processing and administrative charges which increase with the cost of the loan. If two housing finance corporations give you the same amount of loan but at different interest rates, calculate what works out better for you.
Home Purchase Loans Application Process:
An individual/company/professional can apply for home purchase loans in different home loans corporations by filling the application form. These days companies provide online forms for customer convenience. There is certain information that one must furnish in order to qualify to approval of home loans.
Documents Required for Approval of Home Purchase Loans:
Businessman/ Self employed professional:
Application form with photograph
Educational qualification
Identity and residence proof
Proof of business existence with business profile and last three years income tax return
Last 3 years income statement and balance sheet.
Last 3 month's personal and business bank statements.
Processing fee check
Salaried customers:
Application form with photograph
Identity and Residence proof
Latest salary slip
Form16
Last 6 months bank's statement
Processing fee cheque.
