Home brings in joy, comfort, pride and sense of belonging. Every owner of a home will tell you that a home endows a sense of being, this is a kind of asset that no owner will trade or put up for a bet, as it is the most precious thing that anyone can own.
To witness this sense of joy, pride, ownership, now would be the apt time for you to plan out your purchase for home. No matter whether it is 30 lakh home loan EMI or 1 crore home loan EMI amount, you can place the application for home loan and attain your goal of becoming a homeowner. There are various advantages of owning a home through home loan, you can avail tax benefits on interest constituent paid and loan proceeds repaid. With a home loan, you can attain your home ownership dream today instead of attaining it in the future when you are old. Highlighted here are top three benefits of becoming a homeowner –
Low property costs –
Now you as a home buyer have several options in the segment of affordable homes. This has 2-prolonged benefits for you as a home buyer, firstly, you can afford a bigger home or buy a home for lower proceeds that is within your budget. Next, you can make the most out of the benefits of purchasing a home with a home loan like tax benefits, paying a minor amount as margin or down payment and using the home loan option to pay the remaining, higher loan tenure of as high as 30 years, etc.
Reduction in the GST rates on your home loan –
GST refers to the goods and services tax rate on the purchase of a home, which is reduced considerably on home loans.
Low rate of interest –
Today, home loans have become extremely affordable as they are available at lower rates of interest than other loan options. Lower rates lead to lower EMI proceeds, which makes the option of home loan very attractive as well as affordable.
The main advantage of opting for a home loan is you can become the owner of the home today and you need not wait for long to accumulate substantial capital to ensure purchase of home. Moreover, your repayment tenure for home loan can be extended for up to thirty years based on your eligibility and other crucial norms set by the home loan lender. This endows you the major comfort in repayment as you can repay over a long time period without stressing much on your finances.
What’s the stepwise process you must follow to apply for a home loan deal?
While you might be convinced regarding the requirement to consider becoming the owner of a home today, you might wonder how you must go around the same for availing a deal on home loan and what should be your initial step.
When you place an application for a home loan through the online platform, you make the application with just a few easy steps. For example, HDFC’s online application process for home loans is easy and quick. All you must do is approach the website of HDFC, check up your loan eligibility criteria, fill out the property details, fill out the loan application form with important personal information, upload your important documents like your address proof, identity proof, and income tax returns and submit the same. Upon getting your application for home loan, HDFC will instantly begin the processing of your home loan and revert with approvals with specific terms and conditions.
Also Check: 1 Crore Home Loan EMI
Step wise process to apply for the home loan –
Step no. 1 – Place the application for home loan
You must ensure to submit the duly filled out application form along with crucial documents like identity proof, income proof, address proof, etc. If you are placing an application with a co-applicant, you need to submit a set of documents of your co-applicant too and the co-applicant even must sign the form.
In the case you have short listed the property already, you must mention the information or details while filling out the form and submitting the photocopies of the property linked documents for technical and legal evaluation. Also, you can apply online for the HDFC home loan by approaching the website of HDFC. You can also call up on its toll-free number for any issue resolution or assistance.
Step no. 2 – Loan approval
After you successfully submit the documents along with the form, the evaluation process starts. The lender evaluates your eligibility depending on a particular set of information linked with your income, credit score, liabilities, etc. In the case, you are self-employed, then besides the above-mentioned eligibility criteria, the lender even evaluates the sustainability of your business, cash flow stability, etc. Here, in this stage, credit investigation is performed, where the lender’s representative may get in touch with you or approach your office or home to authenticate the details you have provided in the application form. Based on this evaluation, your eligibility is determined.
Step no. 3 – technical and legal authentication
You must provide the relevant property linked documents. These must include a thorough chain of the title document, sale agreement with the builder, OC or occupancy certificate, NOC or no objection certificate, and other crucial documents that may need verification. Also, a technical inspection is performed on the property to evaluate if the property or home is constructed according to the sanctioned plans and various other norms and to evaluate the value of the market.
Step no. 4 – home loan sanction
Post determining your eligibility for loan and authenticating the technical and legal aspects of property, loan amount is communicated through the sanction letter. This sanction letter consists of the listed details –
∙ Special conditions to be met before the disbursement
∙ Validity of sanction letter
∙ EMI payable
∙ Loan repayment tenure
∙ Kind of rate of interest applicable i.e., floating or fixed rate of interest
∙ Home loan rate of interest
∙ Overall sanctioned loan proceeds
∙ Other terms & conditions