Well researched and calculated steps are imperative in buying a home. In 2020, it is a big yes to invest in real estate. Housing sales in India declined by 79% between April and June. Also, there has been a 1.9% fall in home prices in the second quarter of the year, making it convenient for purchase. However, finding the right property is only one step. Picking an affordable housing loan is just as important. You should be able to choose the best offers which suit both your requirements and the EMI budget. Have a look at what to remember while considering a loan in the current market scenario.
Save for Down Payment
In India, RBI guidelines have notified banks to provide only 80% of the property value as a loan. So, you are required to finance the remaining 20% as a down payment. However, the more the payment percentage you make, the lesser would be your repayment obligation. You can get your hands on the best home loans, along with the right support for a rewarding experience. Tweak your monthly budget and set aside a certain amount regularly. This can act as the down payment for your desired loans.
Both salaried and employed class have to present filled and signed application, and identity / address proofs (KYC related) in the form of a PAN card, voter id card, or Aadhaar card. Self-employed people need to show the latest two income tax returns, the latest six months’ bank statements, and last two years’ P&L accounts. Salaried individuals will require two months’ salary slips, the latest Form 16, and the last three months’ bank statements. If you submit all the required documents on time, loans for affordable housing can get approved within as less as 72 hours.
You can get hold of affordable housing in India, by planning your finances well using a calculator so as to leverage the best loan options. The EMI will consist of the interest component and principal amount. The loan will be granted based on the monthly payment you can afford. If you wish to reduce your EMI, do so by choosing a long tenure. This way, you do not have to sacrifice on the loan amount and payback comfortably according to your convenience. If you use a calculator before making a purchase, you will know how much you can borrow with your current salary.
One of the best ways to get the right home loan is to educate yourself. Understand the different options, along with administrative fees, login fees, and prepayment charges. Check whether loan transfers are available after two to three years in case you are unable to bear the EMI burden further. Know the frequency of payment allowed, co-applicants required, and maximum repayment tenure. Lastly, check the eligibility criteria for various financial situations from legal and technical experts for an informed decision.
To get the best affordable housing loan, maintain your credit throughout the process. Banks are most likely to perform a second credit analysis before closure. Also, maintain a good repayment history, take expert advice, and avoid getting biased by past experiences.