Tag Archives: home
Home Loans Required Documentation
After deciding to take a home loan for the purchase of your dream home, the first thing to that needs to be consider is the required documentation for getting home loans. If any of the important documents are not submitted then approval of the home loan can get delayed and there can also be chances of application being rejected.
The procedure for getting a loan starts off with the application form filling, before which you should go through banks website to know about the required documents. Most commonly the documents asked from an applicant are; PAN card, Passport, Voter ID card, Ration card etc. Additionally, banks have different documentation requirements depending upon:
1. Purpose of loan
2. Applicants category
3. Loan amount
4. Term of loan
Documentation for Salaried People
a. Last 3 months salary slips
b. Updated salary certificate
c. 2 years job continuity
d. Appointment letter
e. 2 years Form 16
f. 6 months bank statement
g. For private limited company employees, company profile
Documentation for Self Employed People
a. Business profile on company letterhead
b. Last 3 years IT returns
c. Chartered accountant certified income computation
d. Last 3 years balance sheet & P/L account
e. Last 1 year bank statement for personal & business account
f. For professionals, professional certificate copy
Documentation for Property
a. Khata certificate
b. Last 13 years EC
c. Latest paid receipt for property tax
d. Last 13 years parent documents & rest link documents
e. Already made payment receipts
f. For old house purchase; sellers title documents & sale agreement
g. For flat that is newly constructed; construction or sale agreement & on builders letterhead break up of total cost
The other important point to keep note of are that banks always make sure that repayments to be made by borrower do not exceed 40% of his net salary & lend about 90% of loan amount. If your repayment record has been poor or had defaults for previous loans then it could be very difficult to get approved for a home loan.
Saving Money With Your Home Equity Loan
Home equity allows you to borrow money by mortgaging your home. This is one of the simplest methods of borrowing that takes place today to meet the growing needs cash to renovate the house, make repairs or even paying for the children? Education. Home equity loans are available with lower interest rates and also provide the borrower with many other benefits. These loans can save you if you use them to your advantage.
Save money by using home loan is a good idea as long as you know, the right way to proceed. First, you must look around you the best deal he can get his hands on. There are many lenders and each provides different interest rates. You should take your time to ensure you get the best rate.
A simple way to do is surf the Internet and find the rates offered by other lenders. This way you can get the price and there is no need to travel.
You can also check with your local bank, especially if you do a lot of business with them. Because you are a valued customer, you can negotiate terms to suit your needs, and they will most likely oblige. If not, it was worth trying.
If you already have a lender, and then discuss with the representatives. They would be more than willing to offer a good pace, to ensure that you continue to do business with them. This saves you time and money because there is no need for you to tour the whole city for other alternatives.
Secondly, if you have a good credit rating, it is easier for you to lower interest rates on your loan. So if you can help, and try to get a good credit score before applying for home loans. Apart from interest rates, you should also check and be clear about the terms and conditions. All these could be favorable if the credit score is high.
If you take home loans to make improvements to your home or renovate your home, this will increase the value of your home. This will allow you to receive lower interest rates, as the value of the house is now higher than the loan value. This increase in the value of the property works as a tool for saving money.
Finally, it is important that you take the amount of money you need. There is no need to borrow beyond the simple reason that the lender is willing to give you more. The reason is that the higher the value of these loans are higher interest rates and the loan will be repaid over a longer period of time.