Know These Terms Before Availing a Housing Loan

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Know These Terms Before Availing a Housing Loan

According to Makaan, Lucknow is the topmost Tier II city to buy a property in India in 2019. This can be owed to the fact that the rapid growth of textile, aeronautics, automotive and other industries has increased employment opportunities in the city to quite an extent. Thus, it has resulted in an increase in demand for housing in the city. Consequently, more individuals are looking to avail a home loan in Lucknow to invest in properties.

According to experts, due to a decline in home loan interest rates, 2019 may be the ideal time to invest in purchasing a house. Hence, before you choose to avail a home loan to buy a house in Lucknow, look through the following factors to make the process simpler.

Things to Know Before You Avail a Home Loan

With financial institutions digitizing their application process, availing home loan has become significantly easier. However, you should look through the following factors to make sure that you are well informed about the loan application process and liabilities.

  • Check the eligibility criteria

The home loan eligibility criteria usually vary from one lender to the other. However, there are a few common factors like the borrower’s age, nationality,  and income that are taken into account to deem whether an individual is eligible to avail this advance.

Make sure you comply with the eligibility criteria put forward by your financial institution before you apply for housing credits.

  • Check your repayment liability

Before you avail of a home loan, make sure you calculate the EMI you are liable to pay. When you calculate the EMI, you can plan out your future finances much better. Additionally, it can also help you to assess whether you can afford the amount you are applying for.

You can also opt for the benefits of a joint home loan if you find that your EMI amount is exceeding your spending capacity. Applying for the loan with a co-applicant distributes the payable EMI amount among several individuals, thus reducing your repayment liability.

  • Check the amount you can avail

With home loans, you can avail a high loan amount value of up to Rs. 3.5 Crore. You can utilize this amount to cover about 80% of the value of your property. The rest of this amount is expected to be covered by you as a down payment when you avail the advance.

  • Look for affordable interest rates

Put in enough research before you apply for the credits to get the lowest home loan interest rates in Lucknow. Even with financial institutions slashing their interest rates, you will find that few lenders offer more affordable rates than the others. Choose the rate most suitable to your needs.

  • Check the documents required

Following are the list of documents required for a home loan

  • KYC documents
  • Form 16 or salary slips
  • Your bank account statements from the last six months
  • Documents for proof of your business if you are a self-employed individual
  • Choose the proper tenure

Most financial institutions offer flexible loan tenure that can go up to 20 years. Make sure you select the loan tenure according to your repayment capabilities.

  • Look for additional benefits

Few financial institutions offer several additional benefits to the home loan. For instance, few lenders offer benefits like balance transfer facilities, top-up loan amount, customized property dossier, etc. with their home loan.

Knowing the above terms before applying for a home loan in Lucknow can make the process significantly easier. However, make sure you check all the details carefully before applying. Lastly, you can use an online home loan EMI calculator to know the EMI you will be liable to pay. This calculator requires parameters like your loan amount, interest rate and tenure to present you with your accurate repayment amount. With the above information, you can easily avail a home loan from any financial institution in Lucknow.

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