Owning a home is something every young earning individual dreams of. However, everyone is not able to achieve that dream till he or she is in his/her late 30’s or early 40’s. If you are someone who is staying in a rented apartment and wants to buy your apartment, we are here to tell you how to get a Home Loan in Bangalore and buy your dream home. Options are available to get an instant Home Loan in Bangalore. You can also apply for a Home Loan online in Bangalore, just ensure that you have all the required papers and make a document checklist.
Bangalore is an IT hub and has plenty of IT companies, and hence the demand for commercial properties is never ending. Real estate in Bangalore has been undergoing a boom in the past few months. Investment in the housing sector is encouraged by growing disposable incomes, laterally expanding the market, various avenues for housing, and infrastructural developments. Staying in a rented house can save you money on a yearly basis, but it also has downsides.
The main downside of staying in a rental apartment is shifting from one place to another and finding a new apartment which meets your needs and that too in a society which has amenities and other facilities in the locality that are readily available. Also, transportation cost of all your stuff may start bothering you after a few years of staying on rent. Hence, if you are looking to purchase a flat in Aurangabad but do not have enough funds, a Home Loan can help you.
Owning a house has become easier by financial institutions and Non-Banking Financial Companies (NBFC’s) who offer Home Loans. Home Loans are gaining popularity as affordable housing options are opening up in the real estate market and hence, people are considering to take Home Loans and move from rented apartments. All you have to do is log on to a lender’s website and fill out an online application form. This form will then go to the financial institution, and they will approve the loan from their side. However, there are certain things that you should be aware of before applying for a Home Loan.
You will not receive 100% down payment from your lender as they are not entitled to do so. 80% is the maximum loan amount can be given to you as you are expected to pay 15 to 20% of the down payment of the total property value. Hence, you should have at least INR 6 lakhs in your bank account if you are planning to borrow INR 30 lakhs for your Home Loan to pay your lender as down payment. Front-End Ratio is an EMI (Equated Monthly Installment) deducted from a percentage of your annual income. Your Home Loan consists of four important factors which are taxes, insurance, interest and principal amount. Moreover, Back-End Ratio is the debt to income ratio which is a percentage of your annual income deducted to pay off your outstanding loans and credit card bills. Eligibility criteria for Home Loans is that you must be an Indian resident having a consistent salary and a minimum work experience of 3 years. The loan amount that you can apply for ranges from INR 30 lakhs to INR 10 crores.
You must know that you should not forget to maintain your house, buy home appliances and other household necessities due to paying off your loan. You must divide your expenses and ensure that you have sufficient funds to maintain your house and family needs. Hence, you have to make sure that your apartment should be well-maintained.
The website of the financial institution you are borrowing a loan from will have an online EMI calculator on which you can enter your loan amount, interest rate and tenor, and it will display your EMI which you are liable to pay.
Therefore, applying for a Home Loan has become a viable option as compared to staying in a rented place.