Steps Involved In Home Loan Process
Home loan is a secured loan which helps in fulfilling your dream of owning a house by funding your cash requirements. There are varied steps which are involved in home loan process. Let’s find out about them-
Home loan is a secured loan which helps in fulfilling your dream of owning a house by funding your cash requirements. There are varied steps which are involved in home loan process. Let’s find out about them-
(1) The first step which is involved in the home loan process is to find out the right property which you can do by verify your documents. Once documents are examined, you can start your search for finding the right lender who can give you right home loan deal.
(2) Banks will check your home loan eligibility by checking your profile and other eligibility criteria’s such as age, income, etc.
(3) Doing a proper comparison of interest rate is the primary part of the home loan selection process. However, there are varied other fees also like applicant fees, legal charges, processing fee, etc., which should also be seen while doing comparison between varied loan offers.
(4) Once you have selected your lending institution, you will require filling the application form, wherein lender will ask you to complete different information about your financial assets and liabilities along with other personal & professional details. You will require doing a proper submission of varied necessary documents to the bank which will be later verified along with application.
(5) Lending institutions check borrower’s loan eligibility and the loan amount is confirmed on the basis of it. The repayment capacity of the borrower will be checked on the basis of salary, age, nature of business and experience. Banks will also do a check on the credit history of the applicant by seeing its cibil score. If you will have low credit score then the bank will reject your loan application.
Home purchase loan- It can be said to be a basic type of loan which can be taken for buying a new house.
Home improvement loan- Such type of loan is mainly for renovating or repairing of the house which you have already purchased.
Home extension loan- Such type of loan proves useful when the borrower is intended to extend or expand its current house, like adding the extra room, etc.
Home conversion loan- It is that type of loan wherein the borrower has already applied for a housing loan for financing current house and is now intended to move to another home. Such type of conversion housing loan proves useful for the borrower for transferring current loan to the new house which needs extra funds. In this case, the previous loan will pay the previous loan and will fulfill money requirement.
Bridge loan-Such type of loan plays an important role in financing the new house of the borrower when he is intended to sell the current house. Such type of loan can be defined as a short term loan and proves beneficial during the interim period when he wants to sell old house and wants to purchase a new house.
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Different Types Of Home Loans
Home loan can be defined as the secured loan which is provided against the security of a house/property which in turn is funded by the bank’s loan. There are various types of home loans available in Indian market for catering different requirements of borrower. Let’s find out some of them-
Home loan can be defined as the secured loan which is provided against the security of a house/property which in turn is funded by the bank’s loan. There are various types of home loans available in Indian market for catering different requirements of borrower. Let’s find out some of them-
Home purchase loan- It can be said to be a basic type of loan which can be taken for buying a new house.
Home improvement loan- Such type of loan is mainly for renovating or repairing of the house which you have already purchased.
Home extension loan- Such type of loan proves useful when the borrower is intended to extend or expand its current house, like adding the extra room, etc.
Home conversion loan- It is that type of loan wherein the borrower has already applied for a housing loan for financing current house and is now intended to move to another home. Such type of conversion housing loan proves useful for the borrower for transferring current loan to the new house which needs extra funds. In this case, the previous loan will pay the previous loan and will fulfill money requirement.
Bridge loan-Such type of loan plays an important role in financing the new house of the borrower when he is intended to sell the current house. Such type of loan can be defined as a short term loan and proves beneficial during the interim period when he wants to sell old house and wants to purchase a new house.
Home construction loan- Such type of loan is taken when the borrower is interested in constructing a new house.
