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  • 5 Things To Check Before Taking A Home Loan
    July 12, 2018

     things to check before taking a home loan

    The quest for a dream home is now answered by a home loan nowadays as more and more people are signing up for loans to finance a home purchase. It has become one of the trusted sources for finding finance to build or buy a house. However, like any other financial product, a home loan must also be carefully chosen to avoid problems in the future.

    Here are things to check before signing up for a home loan to ensure a smooth home buying process.

    1. Eligibility

    Repaying capacity is a determining factor in deciding total eligibility for a home loan. The monthly disposable income which is based on monthly expenses, partner’s income, assets, other liabilities, etc. is evaluated to judge the repaying capacity. Also, liabilities like another existing loan can bring down the eligibility

    2. Amount eligible for

    The applicant is mostly expected to pay about 10 -20% of the purchase price of the house or apartment as down payment. The remaining costs including registration, transfer and stamp duty charges are financed by the bank or financial institution.

    3. Loan type

    There 2 common types of home loans based on interest rate include fixed rate loan and floating rate loan. In a fixed rate, the interest rate doesn’t change with market fluctuations, but a floating interest loan varies according to the present market conditions. For long-term loans like home loans, floating interest rated are considered ideal as interest rates are expected to come down after a period of time.

    4. Co-applicant

    A co-applicant is considered highly beneficial while applying for a home loan as it enables the financial burden to be shared thus ensuring smooth repayment without having to affect the monthly budget if the family. A co-applicant can be an immediate family member who is a salaried individual.

    5. Documents

    Making a check-list of the required documents for loan application will help organise everything at the time of submission. Proof of identity and address, recent salary slips, bank statements from the last 6 months along with documents of collateral security are asked to submit by most banks.

    Ladder Kerala is one among top builders of flats in Calicut. Their premium offering Ladder Mankav Greens has become the choicest of addresses among luxury apartments in Calicut. Envisaging a dream home laden with luxuries, the project also offers home loan assistance with a 4.99% of interest rate.