Home loan is considered one of the most important loans out there. It is important because it funds the cost of your home, which is your most important asset and dream. The rising demand for home loans is visible these days. If you also want to purchase your dream home but cannot do that due to a lack of funds, then opting for a home loan will surely benefit you.
Different Types of Home Loans
There are different types of home loans that you should know before choosing one. Each of these loans is taken for some specific purpose. Following your need and demand, you can select any of these types.
- Home Loan
This is certainly the most common loan. You use this fund to buy your dream house. The amount, interest and eligibility differ following various factors. Most of the time, the lender approves around 80% of the total house price you wish to buy. Fulfilling the eligibility criteria is very important for you to get a home loan.
- Home Extension Loan
If you already have a home, you wish to extend, you can opt for this kind of loan. The fund of such loans is used to extend your home or house with another floor or room effectively. A lot many growing families prefer to go for this kind of extension loan.
- Composite Home Loan
On the other hand, there is a composite home loan that you can go for. The purpose of taking this kind of home loan is to purchase land where you are supposed to build your dream home. These terms and conditions of availing this specific home loan could be different than other home loans.
Aspects to Consider Beforehand
Before you decide to go for a home loan, you must consider a few aspects to make your loan application process smoother and faster. Two of the most important aspects are eligibility and required documents.
- Eligibility
A lender or bank has a certain home loan eligibility that you are supposed to consider first. The eligibility requirement is regarding your age, annual salary, employment type, margin requirement, assets, liabilities, etc. Unless you fulfil the eligibility criteria, you won’t be considered for the home loan.
- Documents Required
On the other hand, the lender or bank is also supposed to require some documents for your authentication. First, you need to fill up a form with your recent photograph. Apart from this, there are some documents that you also need to submit to the bank, such as your identity proof, address proof, employment details, salary slip and bank details etc. providing such documents is very important for you to get the loan.
So, getting a home loan would be easier and more effective if you followed the above-described points. It would be beneficial for you to explore DSA partners. Moreover, you should do the needful to explore other aspects of home loans if you wish to get a home loan to buy your favourite home.
