Apply home loan online in India

There has been a high increase in the number of people buying homes in India. Buying a home is a desire for many people across the world. It is also one of the biggest purchases that a person can ever make. But due to financial hurdles, a number of people become unable to bring this desire into reality. But, do you know that you can buy a home even when you do not have much money in your bank account? Yes, there are many lending institutions in India that you can use to get a home loan.

The high increase in the number of people going for home loans in India has triggered a drastic increase in the number of lenders. This has become a challenge when it comes to spotting the best lender in the industry. It is therefore very important to take your time to do a little research before deciding on any. When you are equipped with the right piece of information you can hardly make a wrong choice.

One of the best methods that you can use to decide on the best is by reading the reviews of a particular lender to see what his previous clients are saying. This will help you know about the lender based on the experience that the previous customers had with the lender. Another equally effective method is involving an expert in your search.

The growth in the home lending industry in India has made the services to be readily available to the clients. The lending companies have now taken their services online. You can now apply home loan online; right from the comfort of your home. All you will be required to do is log on to the website of the lender and read through the requirements of the company and fill the online form on their website.

The good thing about applying for a home loan online is that the clients go through a simple process unlike when doing it at the lenders’ office or on hard copies. It is a process that will help the loan applicant save a significant amount of his/her time and money. Here are some of the factors that you should put into consideration before you apply home loan online in India.

EMI

It is very important to know the equated monthly installments that you will be required to pay by the lender. This will give you a good structure for your home loan as well as help you decide on the best repayment plan. Seek professionals for home calculation to learn more about the interest that you will be required to pay.

Extra charges

Are there any extra charges that you will incur? With the stiff competition of home loan providers in India, it is easy to be persuaded into applying for a loan without full information. Take you time to consult with the customer care of the lender to get all the details of the loan.

Check your credit score

To know your credit score, you can check with the Credit Information Bureau (India) Limited (CIBIL). The points are given based on the applicant’s credit bill payment, loan repayment, existing loans, bank account statement among other factors.

Should You Apply For Pre-Approved Home Loan?

The increasing property prices across India and the desire for better living have meant that there are hardly any working individuals who can afford to buy an apartment without opting for a home loan.Taking a loan for buying a flat is after all not such a bad proposition as you get dual benefit of tax advantage and at the same time do not have to utilize your entire lifetime savings in getting a shelter for yourself.As per the guidelines issued by Reserve Bank of India (RBI), the loan to value ratio (LTV) for home loans of up to 20 lakhs is 90 percent, for home loans from 20 to 75 lakhs is 80 percent, while LTV for housing loans above 75 lakhs is set at 75 percent,proving to be a great help in your home buying process. The only dilemma that you face as a home buyer is whether you should opt for pre-approved home loan or applyfor it once you have your apartment finalized. Opting for a pre-approved home loan is a much better option and it has more advantages than drawbacks. However, all pros and cons related to pre-sanctioned loans should be carefully scrutinized before opting for it.

Advantages of pre-approved home loan

Allows you to plan your finances better

One of the important benefits of these loans is that you get to know your home loan eligibility in advance and can plan your finances better. In case your loan eligibility is lesser than your requirement, you can always add a co-applicant to increase your eligibility.However, it is important to note that all co-applicants should be co-owner of the property. The process of applying for these loans is also easy and most banks and financial institutions enable you to apply home loan online. Once the online application is done, their representative will come to your home to collect the required documents in order to analyze your credit worthiness. The list of documents differs on the basis of your employment, and mandatory documents required to be submitted for salaried individuals are different from self-employed and business owners.

Prevents you from unpleasant surprises

The other reason why pre-approved loans are so important is because they prevent you from getting aftershocks and unpleasant surprises. There is no fear of deal falling through as you already know your loan capability, the equated monthly installments (EMIs) to be paid and the down payment amount that you have to arrange for. You can search your property on the basis of your financial abilities. This goes a long way in expediting your home search process and makes the entire transaction easy, smooth and hassle-free.

Disadvantages of pre-approved home loan

Processing fees is generally non refundable

This could be termed as one potential drawback for pre-sanctioned home loan. However, it must be noted that the processing fees even though non-refundable is a minuscule amount. In addition to this, there are many banks that increase the validity of the pre-approved loan by few months to enable you to purchaseyour home. Also, not all banks charge the processing fee for pre-approved home loan.

Interest rates do not change

The other disadvantage with these loans is that the interest rates are fixed at the time of approval and do not be change if they fall when the loan is actually disbursed. This should not be an issue if you have opted for a floating rate home loan as the interest rates can be adjusted once the amount is released by the bank. http://cash-enavi.com/should-you-apply-for-pre-approved-home-loan/ http://cash-enavi.com/should-you-apply-for-pre-approved-home-loan/ http://cash-enavi.com/should-you-apply-for-pre-approved-home-loan/Also, in India the interest rates are not often changed by RBI in a hurry. So they neither fall norincrease within months and there is anappropriate method that is followed to give the retail customers enough head room to adjust to changing rates.

Conclusion – The pre-approved home loan come loaded with several discounts and benefits and play a key role in making your home buying experience pleasant and satisfying. Like any financial product, they too have their set of drawbacks.However, none of these would pose any major challenge to you and can be easily overcome. It is thus advisable to opt for pre-approved home loan to expedite your property transaction.