For buying a plot or a land or to build house or a flat, home loan is required by many people as a huge amount of investment is required and it is difficult to pay such a huge amount in short period of time. Hence home loan is very effective in making this dream of constructing own house true. For this, there is an eligibility criterion that should be fulfilled to apply for the loan. Various elements are considered in order to give the loan. This mostly depends on the monthly income and savings of the particular individual who is in requirement of the loan. His or her expenses will determine that loan should be passed or not. Other factors also include savings, assets, income stability and liabilities. This is done in order to get surety about the person that he or she is able to pay back the loan. Age limit is also set by the banks for providing the loan to a client.
The total amount that is being given or being financed will include all the charges that are registration charge, transfer and stamp duty charge.
To remain in the safer side a co applicant is very important to take part in this.
Document verification takes place in which the checklist of the various documents required are attached to the registration form along with the photograph of the applicant. These documents also include all the legal documents along with identity proofs and also the residential proof. Income is determined by the pay slips that are also required to be attached with this checklist. Seeing and verifying all the documents, bank will decide that the loan can be given or sanctioned or not. The tenure, loan amount, interest rate and all other important information regarding the home loan will be mentioned on the sanction letter.
The interest rate varies a lot and hence a vast range of options are provided in order for flexible decision of the applicant to choose between the options. But this flexibility also varies from place to place or for different banks. This is because of different policies of the banks.
Along with EMI, the processing fee and technical evaluation fee is also to be given to the lender. Some banks charge this evaluation fees with procession fee and some separately. EMI to be paid back will include both principle and interest and this will start after the full disbursement of sanction amount.