To own a home qualifies to be called as a “personal achievement” that every home owner is proud of. Some may think of it as a milestone in their lives while the other may think of it as a gesture of “giving back”. Having said it all, it still occupies a large part of our emotions and long term goals. To inherit a house maybe good but to buy one of “your own” is altogether another level of happiness, pride, and security.
Every home buyer has been once been a “first timer”. A first timer at actually going out in the market to look out for options that fit their pocket and their dreams to sealing the deal and finalising the mode of payment. How many of you can think of people who have bought a home without a loan except the Tata’s, the Ambani’s or the few other of that stature?
Home loans have made achieving the goal of owning a home possible. It has given individuals a hope, a support, and more importantly a path to make it happen. To finance house is now just a bank away! This brings us to our next big question, what exactly are home loans? A home loan – a type of mortgage loan, is a great form of financial assistance if you are short on cash, or are not in favour of liquidating your savings. With easy monthly instalments and the option to choose the repayment tenure as per your convenience, banks help make your dream of purchasing a home a reality.
Let’s dive deeper! The many housing finance companies our country has, classifies home loans into 4 basic categories which are:
- Home purchase loans: They type of loan in which an individual uses the disbursed value in buying a home, whether newly built or already constructed.
- Land purchase loans: The type of loan in which an individual uses the disbursed value in purchasing a land that one is thinking of constructing a home on.
- Home construction loans: A tricky one! This loan type can be defined as when an individual wants to build a home on one’s own land.
- Home improvement loans: The type of loan that is given to people who need funds to renovate their existing homes to give it a refurbished look and feel.
Now you know getting a loan for the residential plot of your dreams is also possible
Further, it’s important to know of the other different types of mortgage loans on could use as well. They are:
- Simple mortgage
- Usufructuary mortgage
- Mortgage by conditional sale
- Mortgage by title deed deposit
- Anomalous mortgage
After understanding what home loans are, their basic types and also what mortgage loans are broadly classified into, it’s now time for some easy tips for every “home loan applicant” to consider. Read on!
- Research on loan options
- Aim and know at UK mortgage affordability
- Spend cautiously
- Choose suitable EMIs
- Repayment tenure
- Maintain CIBIL score
- Know foreclosure norms
- Home loan eligibility check
- Additional charges
- Read the documents carefully
After having read all of this aren’t you all charged up to finance a home that perfectly makes your dream home come true? Be it plots for sales in Hyderabad or a ready to move in house in a plush neighbourhood, do your research and move into your “abode of happiness” in a blink of an eye! If you’re a felon looking for housing,