The need for a home loan arrives when an individual or a family is seeking to buy a residential property. Lender of the home loan is either a bank or a financial institution that holds the title of the property until the buyer pays back the full loan amount along with interest. The tenure offered usually depends on the loan amount and terms of the bank/financial institution.
Eligible candidates for a home loan are those who are self-employed or salaried individuals, having a regular source of income. Most of the banks consider 21 as an eligible age for home loan application and he/she should not exceed 65 years during the completion of loan payment. However, there are still more queries related to home loans which are often asked by the people. Some of the FAQs have been mentioned below and we have answered them all:
1. What are the lenders (banks/financial institutions) likely to consider when granting a home loan to you?
Lenders determine factors such as your income level, age, qualification considering your stability in the income and profession, whether you are an Indian citizen or an NRI, spouse’s income if you are a co-applicant, existing loans, and credit history/score.
2. Who can be joint borrowers for a home loan?
The family members such as your parents, spouse, siblings, and kids can become joint borrowers, and up to six joint borrowers are allowed for a home loan. Another factor that the lender considers in a co-borrower is how robust his/her credit history and credit score is.
And when a home loan application is already co-signed by your family member, the lender will not qualify your friend to apply for a joint home loan.
3. What is more beneficial for me while seeking for a home loan - a public or private bank?
The best advice would be to compare the interest rates of home loans offered by various lenders. Also, take into account the different types of processing and other related fees the lenders are likely to charge on a home loan.
4. After having paid EMI for some time, can I ask my lender to increase the EMI and shorten my loan tenure?
Chances are that the lender will consider your request and agree to re-evaluate the process of loan payment. It also largely depends on the conditions upon which you agreed to the home loan with the lender. Once agreed, the basic document of yours will be asked for verification purposes.
5. What documents do I need to keep handy while applying for a home loan?
After filling up the loan application form, get your passport size photographs, identity proof such as PAN card/passport/ driving license/ voters ID, residence proof, bank statement for at least past 6 months and salary slips, and a copy of plan approved for the proposed property construction. Rest, consult with the lender.
6. Are there other charges involved in the home loan process?
Yes. The common ones are processing fee, commitment fee, pre-payment charges, and stamp duty.