Things to Remember When Applying for A Home Loan

Everyone wishes to buy their dream home, but it comes with a long-term financial obligation. When you are purchasing a home, you need to conduct thorough planning to get your finances in order because a secured loan comes with the added risk that if you default on your monthly instalments, the lender may take possession of your property to recover their losses. Lenders are less hesitant when approving home loans because of the reduced risk factor. 

When you apply for a home loan online, here are a few things you must remember:

• Comparing Lenders:

Before applying for a home loan, you must research the multiple different lenders that are offering home loans, as this can help you receive the best home loan offers. You may find low-interest rates and lucrative lending terms as well, but at the same time, you should not apply to multiple different lenders because this will have a negative impact on your CIBIL score. 

• Eligibility Criteria:

When applying for a home loan, there are a few eligibility criteria that you need to meet, such as:

1. The applicant must be between the ages of 23 and 62 years.

2. The applicant must be Indian.

3. A monthly income criterion depends on the city and age of the applicant.

4. Salaried and self-employed individuals can apply for a home loan but have a separate eligibility criterion. 

• Documentation:

While applying for a home loan, you will need to submit the following set of documents:

1. Identification Proof such as Pan Card, Aadhaar Card, Passport

2. Income proof such as your latest salary slips 

3. Address proof such as property tax receipts, utility bills 

4. Banking statements for the past 6 months 

5. Income Tax Returns