An Ultimate Home Loan Guide for First-Time Home Buyers in India

An Ultimate Home Loan Guide for First-Time Home Buyers in India

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For individuals who are looking to purchase or build their own home for the first time, it can often get overwhelming to process all the information and meet all the requirements of the process. If you are a first-time home buyer and want to apply for a home loan Standard Chartered Bank is one of the best banks for you. Individuals must not forget that there are a few very important factors that one must keep in mind before moving forward and applying for a loan, such as eligibility, interest rate, tenure, and the loan amount. Also, to make your journey for a home loan easier, you can apply online for a home loan.

Home investment is a huge and notable investment; here are4 factors that may affect your home loan application.

Factors That Can Affect Your Home Loan 

  •     Age

Certain banks do not approve or allow loans to individuals who are closer to their retirement age. The younger you are, the more accessible or easier it is for you to secure a loan.

  •     Age of the Property 

The age of the property is one of the most important factors that is considered by the bank when approving a loan. If the property is very old and not in a decent state, it is difficult to secure a loan.

  •     Monthly Income

If you have a decent and stable source of income, then it is much easier for you to secure a loan. However, if you are self-employed or a freelancer, it can get tricky for you to secure a loan. If you have a decent and stable job, it reduces the risks and threats when it comes to the payment of the loan.

  •     Credit Score

If you have a low credit score, it may harm you to secure a loan. Their chances for your loan to get rejected. Whereas if you have a higher credit score, it can assure you that it is easier for you to secure a loan.

Another important factor that every individual who is looking for a home loan must investigate is what type of home loan is suitable for you. One other key factor that you need to keep in mind is that you need to calculate your home loan EMI before moving forward with the application.

There Are Majorly 4 Different Forms of Home Loan

  •     Home Purchase Loan

Home purchase loans are one of the most popular types of loans that most first-time homeowners look for in India. In this type of loan, the homeowners use segregated loan amounts to purchase a home or an apartment of their liking.

  •     Land Purchase Loan

As the name indicates, a land purchase loan helps individuals to buy and secure a piece of land that they want to buy to further make a house. The bank typically provides 80%-90% of the cost to buy that piece of land.

  •     Home Construction Loan

This kind of loan is for individuals who are looking for loan options to build a house on their piece of land. The application and the process of the kind of loan can often get very tricky to secure.

  •     Home Improvement Loan

This kind of loan is secured by individuals who do not have enough funds to renovate their residential houses.

To Conclude 

Buying a home and applying for a home loan can often get too much for an individual to handle, but you need not worry; there are easier methods to make your journey home loan journey easier. And finally, we have discussed everything you need to know about applying for a home loan.

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