The process of buying your own house begins with the decision to buy a suitable property – this is the easy part. The tough part is what comes later – applying for a housing loan and getting the loan process underway with minimum hassle.
When the real estate developer is a reputed entity in Thane micro market, getting the home loan becomes quite easy. Developers like Puranik Builders have project approvals from major housing finance players such as ICICI Bank and HDFC Ltd. Thus, the loan process is much shorter and quite hassle-free, provided you apply with the correct documents and have a stable source of income.
But before proceeding with the loan application, it is important to assess your finances and find out how much will your monthly outgo be. For this, you can use an online home loan EMI calculator that lets you find out how much EMI you will pay every month against your desired loan amount. You can calculate the home loan EMI basis the loan amount you wish to get, the tenure of the loan (in terms of months) and the rate of interest.
Using the EMI calculator for the home loan helps you assess your finances better. If you feel that the monthly outlay is too high, you can ask for a lower loan amount or negotiate the interest payable on it. You can seek a longer tenure, so that the EMI spread is lowered uniformly. Do note that you cannot get the entire house price as a loan – you will get at best 80% of the house’s value as a loan. The remainder must be paid from your own resources.
Do check the loan documents requirement to get your paperwork in order before you make the loan application.
For most of us, purchasing a house is a once in a lifetime investment that we have to get perfect the first time around. The primary reason for this is the fact that property investments are substantial and made with a long-term perspective in mind. Finding your dream property and getting your home loan sanctioned are two of the many steps that need to be considered during a home buying process. However, as they say, knowledge is power, and knowing the future gives one the ability to change it. This statement couldn’t be more accurate when it comes to home loans. Understanding the eligibility for credit, its tenure, and EMI can do you a world of good, and save you from a whole lot of trouble.
The Equated Monthly Instalment or EMI is the fixed repayment amount that you would need to pay every month as agreed at the time of your loan being approved. So, you should know exactly how much you would be paying over the next 20 years or so to avoid any financial stress in the years to come. At such times, a home loan EMI calculator can be of great help and will assist you in finding out the right EMI amount you can afford to pay.
Helps you plan finances: Using a home loan calculator can help you decide the amount of EMI you can comfortably pay monthly without breaking your bank account.
Aids in obtaining loan approvals: Knowing your EMI amount will also tell you the loan amount you can afford. Thus, when applying for a loan by filling in the right amount,the chances of your loan getting approved is higher.
Streamlines your budget for home purchase: Once you know your EMI and loan amount, you will be able to define the budget for your dream home. Thus, you can narrow down your house hunt, thereby saving time.
Real Estate developers like Puranik Builders have projects approvals from major housing finance players such as HDFC Ltd and ICICI Bank. Hence, the home loan process is much shorter and hassle-free, provided that the documents submitted have a steady source of income. With the help of the home loan EMI calculator by Puranik Builders, you can find out how much EMI you will have to churn out monthly against your coveted amount.
Plus, you can also calculate the home loan EMI basis the loan amount you wish to get, the tenure, and the rate of interest. The home loan EMI calculator will help you evaluate your income better, and help you make better choices when it comes to purchasing a home.
Income plays a very important role in the purchase of a home. The essential issues to beconsidered include the mode of arranging finances and its consequence on taxation. There are two ways you can finance your dream home: one includes using your own funds and the other is taking a bank loan. The interest paid on housing loan can be claimed as deduction.
A loan can be taken in two joint names for one house to claim a deduction of Rs.1.5 lakhs each for both the individuals repaying the loan.
It is usually safe to take a loan from one of the leading financial institutions. However,it is also important to stay updated with the financial schemes and tax rates:
You can either opt for a fixed or floating rate of interest. The fixed rate is generally 50 to 75 basis points higher than the floating rate.
The tenure of the loan should be decided by the buyer after analyzing various things like repayment capacity per month, earning potential over the next few years, other financial commitments like weddings, children's education etc.
Considering the percentage of the cost of apartment that is available as loan is equally vital. Another important factor is financing for the interior house work, furniture etc.
Generally, housing loans are available ranging from 5 to 25 years. Some banks also offer step-up housing loans which charge a lower EMI for the initial years.
Different banks require different sets of documents for treating a housing loan
Proof of Income such as salary certificates and form No. 16 for last three years, TDS certificates, and bank statements showing credit entries for salary / professional fees, etc.
Title of the property (like the copy of the property sale deed), title report by a solicitor, valuation report, NOC from the builder/condominium/society, amenities agreement, etc.
Other common documents like proof of age, a copy of your passport, driving license, proof of residence, copy of ration card, and others with signature can also come in handy.
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