29 October 2010
Selecting the best offer from an financial institution for applying for a home loan is a tricky choice. Various factors have to be considered and deep study of interest rates, EMI’s and other administrative fees as well as loan processing fees must be considered. Every individual can prioritize their requirements and repayment capacity and thus select the best available home loan from offers in that area or locality.
Government financial institutions and nationalized banks are the preferred sources because they are reliable and they also offer reasonable interest rates on the loan amount. Usually they also have a longer tenure for repayment hence the EMI’s are also low. Private lenders have easy availability of home loans and less time is required for processing but usually they have higher interest rates and lesser tenure for loan repayment hence leading to higher amount of EMI’s. It is also noticed that on default on the part of borrower or delay in payments private institutions may resort to unconventional means for loan recovery.
One must be vary of financial institutions that boast of lower interest rates. Usually they have heavy upfront payments which offset the low interest rates for e.g. a co-operative bank may ask you to compulsorily purchase its shares during the processing of home loan for which you will have to shell out a substantially big amount. Others may quote transfer fees of home agreement and administrative costs as a much higher figure. Taking loan from a reputed institution involves their security and support and they have set rules in case of failure to complete the loan repayment.
Discussing and considering all these factors before going in for a home loan helps to ease out many problems faced during processing of home loans. Also accept the fact that loan amount will be much higher than the principle amount of the house as interest rates are added to this. Hence one must think and then go in for selecting the best institution offering home loans. The loan repayment capacity of the individual and how it will increase over the years also must be considered before deciding on the EMI’s to be paid regularly.
Home loans are becoming welcoming and more accessible to the common man. It is now possible for even young couples to go in for loans according to their financial terms and conditions. No longer do people have to have large sums of money for paying out the loan amount. ‘Interest only home loans’ means that the borrower ends up paying only the interest for some years and then the principle amount is added later for years. This has risen as a better option for many who are not in position to pay large amounts as EMI’s in present years.
In this type of offer the lender gives money to the borrower and the purchase deed is completed. The borrower becomes the owner of the house. Every month he has to pay a small amount that is interest to the principle amount (loan amount). During later years he has to pay the interest along with large sums of the principle amount. This option may be good for individuals who are highly qualified and have a new job and they know that over the years their salary is going to increase with their experience. So they can pay smaller amounts in present years and later on be prepared to pay larger sums to complete the loan repayment. However it is also very risky as no one can predict about later years. The large amounts later on can be very difficult to pay back and one may end up in financial tight spot. Some people also take this type of home loan if they are confident about the price rise of their property. They can pay the interest amount and later as the value of their house increases they can sell this and make profit as well as pay the larger loan amount.
Though a boon to many there are certain risks every individual has to take before going in for an interest only home loan. Their job stability may not be guaranteed over the years and only those individuals who are very confident about their financial growth must go in for such type of loan. Also the property value may drop or remain same so the individual may end up paying more than they actually paid for the purchase of the flat some years back. This may result in financial losses and also it may become difficult to sell the house during payments of large amounts of loan.
25 October 2010
One of the most important adjustments that a newly married couple has to make is that regarding finances. Our priorities vary and one may feel the need for dining out important whereas other may place priority to travelling to exotic places and may be willing to have simple home cooked food. Whatever the likes and dislikes of the newly married couple, a home loan taken for the dream home is the most important decision in ones beginning of new life. Sacrificing certain important aspects during the early-years of marriage may build up over the time. Constant fights over finances may make the relationship sour and the pressure of the home loan may also sometimes go off hand and lead to separation of the couple. Let us discuss few tips to neutralize the negativity among couples and reduce the stress about repayment of home loan.
The decision of taking a home loan has already been done. The couple should sit down and have an open discussion regarding their priorities. Financial planning is must for helping out in this situation. If one of the partners is unaware about the loan then it is possible that this partner may feel the other is cheating on them. Small bickering when fuelled daily may go out of reach and lead to divorce between the couple. Many adjustments have to be made as the couple is new to each other. Habits and manners are different as also the background that they come from. ‘Looking at the dream home’ is the mantra for success and a tonic for the couple till the years of repayment are completed. Facing the fact that a home of ownership is waiting for us after some years is the bonus that is enough for both to carry on. Discussing other important aspects of life like increasing the family, health of elders and other positive points among the couple helps them to understand each other.
Having a dream and taking steps to fulfill them is the guideline and important tip for the couple to carry on in their relationship. Having frequent visits to the construction site and taking a look at the home under construction helps the couple to go ahead and be willing to sacrifice certain financial priorities in order to achieve a home.
23 October 2010
Bad credit means the borrower has a bad reputation of default in repayment schedules. Loan amount taken for home purchase has to be repaid along with interest at certain timely period over the years. Not being able to pay the EMI’s and interest regularly and delayed payments make the borrower a defaulter. It gives bad reputation as a loan taker and in future other lender will hesitate to lend money to such an individual. Here the bad credit loans come as a breakthrough for the individual.
Meaning of bad credit home loans: The reputation of the individual borrower has history of penalty charges, late payments, cheque bouncing history and so on. They are the ones whom lenders hesitate and turn down for future loans. Even these individuals have the option for taking home loan from institutions specially made for them as bed credit home loans.
Who can avail this type of loan: Anyone who has an asset like a car or house and the value is greater than the loan amount can apply for this type of loan even though they may have a bad reputation and history of repayment of previous loans.
Why to go in for this type of loan: Large sums of principle amounts and high interest rates may be the problem for the individual. Thus he can avoid paying this larger interest rates and get this offer of bad credit home loans with a smaller rate of interest fees. He can get out of his previous debt and free himself from the large amounts of home loans.
Bad credit holders can improve their reputation by taking responsibility for their loans and pay regular installments and free themselves from the previous loans. One can take secured loans or unsecured loans. Loans taken against any property or car or other material goods can be termed as secured loan and the amount permissible for loan depends on each individual lender in the market and may even be larger collectively assessing the assets. Unsecured home loans are the ones that do not require any guarantee. The loan amount here may be smaller and installments that is interest rates larger and the repayment schedule is for few years.
Whatever the loan type the interest rates are definitely larger and have to be previously considered before taking any type of home loan. The repayment schedules and financial position of an individual must be assessed before going in for any type of loan. Bad credit loans are a boon for those who have a bad reputation regarding loans and this opportunity allows them to free themselves from the tag of bad credit holder.
Whenever we see advertisements regarding home loans it is widely publicized as low interest rates, cheap loans, best deals for home loans or also as best options for home loans. We also have come across certain offers that are advertised as offers for special categories and limited offer. Let us understand and discuss these terms.
During certain times of the years there are special offers for professionals like doctors, teachers, lawyers or freedom fighters. Here the financial institution offers home loans to these categories on a special low interest rate amounts and also tenure may be adjusted for a longer time of repayment hence coming to an understanding of lower EMI’s. These offers may correspond to certain festivals or certain month’s e.g. like doctors day, teacher’s day. So some institutions offer bonuses and concessions for professionals during a decided period of time corresponding to these occasions. Festival offers are also the most attractive offers where lenders may be willing to part with many factors on deciding the EMI, and give an attractive and difficult to refuse offer. Some may do away with the administrative charges, while other may take the responsibility of transfer of property agreement on their part. Some may negotiate the rate of interest whereas some may reduce the processing fees.
One must be in look out for such offers before going in for a purchase of house and applying for a home loan. There are many advantages and though you have to pay the loan and EMI it is always a bonus to have bargained and got a lower offer for the same loan amount. Government banks and financial institutions also give certain concessions and facilities which can be found out before applying for a home loan. It is also important to remember that the lender is willing to negotiate on the calculations and thus one must do a thorough survey of the available offers in the market and then decide the best payable amount monthly for loan repayment.
21 October 2010
An upfront payment is money given before applying for a home loan. These may include taxes, administrative fees, transfer agreements etc. All this put together makes a substantial amount and one must be prepared with this amount before going in for applying for a home loan. Let us learn more about these payments which are not talked about openly and nowhere do advertisements claim any discounts on these.
First of all let me inform you that these figures are negotiable and depends on every individual lenders rules. Every financial institution advertises and promotes of low interest rates but do not mention about upfront payments. They may have certain fixed charges about loan amount processing and other administrative charges but they are very well willing to negotiate on this amount. Usually we are not aware of this and we take their word as fixed charges and are willing to pay them this amount which is not included in the price of the home. The home loan dealer shows certain percentage of principle amount has to be paid as down payment , transfer charges and other charges and taxes extra. We take their word and even thought hey may be unrealistic charges we accept them and pay them the required amount. Our focus is on purchasing of a new home and loan approval. Every individual whether salaried or self employed wants approval of the loan and so we dismiss these thought and move ahead.
Upfront payments amount is negotiable and for this one must take a thorough survey of the market. Find the value of the home, price per square foot area in that locality, what discounts other builders are offering, interest rates prevalent for home loans in that area, and also various financial institutions that offer home loans. Summarizing all these points together and understanding various procedures for application of home loans helps an borrower to get the best deal while purchasing a new home.
Interest rates are a very common term we usually use during conversations regarding home loans. The media and advertisements highlight various real estate prices and unique opportunities for taking home loans. The most common point of luring from the lenders is that loans are available at low interest rates. Most of the advertisers use this as the best selling point of their property and houses.
Let us understand what interest rates are and how do we judge whether they are low or high. Interest rate is a percentage of money on the principle amount of loan that is taken by the borrower. Each financial institution varies in deciding the interest rates. Government banks offer lowest interest rates but their loan approval procedure requires more time. Private home loan financial lenders and institutions have easy availability of loans but they may have higher interest rates and smaller tenure for repayment. Interest rate is not the only criteria for selection of home loan. One must go thoroughly considering all the other factors before selecting the right home loan.
Rates of interest vary from institution to institution, from place to place, from region to region and also from time to time. Due to inflation and changes in economy the rates of interest decided during certain time may vary after few months. One must negotiate according to the rate of interest calculated on the day of the deal and finalize it or lock it so that other changes do not affect the calculated EMI. If the individual can afford it is best to pay a higher down payment and take loan for the rest. Thus it will be a smaller amount for lesser tenure of repayment.
However much lower the interest rate of the home loan it is always understood that we have to pay a much larger amount than the principle amount hence going for a home loan must be thought about seriously and carefully to avoid undue stress and pressures in the family. The market survey gives offers from different financial institutions regarding their interest rates. Government banks also offer loans and their rates are low. One can compare different interest rates and go in fro the best offer from a reputed financial institution.
15 October 2010
Home loan redemption insurance is a very important facility which can help during any unexpected crises or untimely death of the borrower. The family does not have to face the financial pressure of repayment of the loan. This is also a type of insurance taken during the purchase of home and applying for a loan.
One does not understand the importance of this insurance and many of individuals shy away from this topic due to the increasing total amount of repayment along with the insurance amount. This does not allow the individual to think about such circumstances that happen unexpectedly during the repayment tenure. Due to circumstance of financial crises, sudden death or accident of the home owner it may bring the family in a tight financial crises. Loan repayment may become impossible for the surviving spouse and may also lead to vacating the present home due to non-payment of loan amount. The lending financial institution may have the option to sell the property or other means for loan recovery. If this is not possible the family may have to vacate the house.
Here a presence of mind on part of the earner and borrower counts. If there is only one earner in the family it is best to go in for a home redemption insurance. A small amount is increased for payments every month and though it may give a pinch to the pocket it goes a long way in securing the safety and security of their family. Monthly payments of the insurance are cut along with the loan repayment EMI’s. The benefit of this insurance is that on untimely death of the borrower the insurance company pays the remaining loan amount and the other spouse and family may not have to let go the house.
Even though most of the times it is not required but it is always advisable to keep in mind the changing situations in our lives. Nothing is stable and economy also keeps changing. The priority of every individual must be safety, security and peace of mind of family members. Taking a home redemption insurance policy goes a long way in keeping life stress free and covering the aspect of the unexpected future.
13 October 2010
When we think about taking a home loan the impression of making many rounds of the lending institution or bank is the picture created in our minds. We repel with the idea of convincing the authorities of our financial status and the capacity for repayment. But this is not always so. If we can get prior information regarding the documents and procedure required for taking a home loan it would ease out many difficulties and also make the process of purchasing a home a more pleasant one.
The salaried class are the ones which can get loans easily as they have their salary slips and work experience records that can help to show their financial standing in the society. Assurance of the required amount as salary is a important assurance for the financial institutions or private lenders to approve of the loan amount applied for. People working for a company or government and getting regular monthly salary can be termed as salaried class. Preparing before hand about the documents required for home loans helps the buyer to be prepared with the documents and also knowing the procedure helps to be prepared and enjoy the blessing of purchasing a home. A list of important documents required for the application of a home loan by the salaried class is given below in simple terms.
Age proof: The ration card or Pan Card Xerox can be used for age proof of the individual or borrower.
Address proof: Telephone bills or electricity bill Xerox can be used as proof of residence.
Income Proof of the applicant: Salary slips Xerox can be used of previous few months as income proof.
Last six months bank account statements: Bank statements allow the lender to know the financial standing of the borrower.
Passport sized photographs of the applicant and the co-applicant: Recent photographs of the individual to prove the identity of the borrower.
These are simple list of documents and they may be slightly different for different institutions. During processing one may require to share total assets for proving their repayment capacity. Some institutions also require document proof of at least two individuals who have a good financial standing in the society. These are reference parties who can be contacted in case of default or not being able to pay the installments on time.
‘Other hidden costs’ are a term we all are familiar with. Many a times we go to purchase some good and we are made to pay ‘taxes extra’ an amount more than the printed price. Usually there is a small asterix below any advertisement which we do not pay much attention but during purchase it increases the price. The same matter happens with home loans. We see heavy discounts and low interest rates but we do not consider the hidden costs that we end up paying during taking a loan for purchasing a home. A home loan may be in simple terms amount borrowed by the borrower from the lender for a certain period of time with a certain amount of interest charged with the amount to be paid. As an individual comes up with the decision of taking a home loan one is usually not aware of other processing charges and this may lead to quite some amount if not prepared for. Also certain financial institutions may make the borrower open account in their bank with depositing a certain amount minimum or also the borrower may have to oblige by taking their shares which can be a pinch as the individual may not be prepared for this money.
|Meaning of Joint Home Loans|
It is always advisable to get thorough knowledge from different financial institutions and private brokers for their special requirements other than the interest rates before taking the step of applying for a home loan.
1) Processing charge: This amount is taken by the bank for the application and other processing charges. It may vary for every institution but usually may be 0.5% till 1% of the loan amount.
2) Administrative fees: The different paper work and documents required as well as the stationary is added as a fee.
3) Legal charges: Some banks may also charge for legal verifications and visits from the verification teams. This may vary from different individual banks or private brokers.
4) Prepayment penalties: In case the borrower or individual that has taken the loan is willing to pay the amount prior to the set dates the bank loses on the amount earned as interest so they apply penalty charges for closure of the loan. Still the borrower is at benefit as this penalty fee is much lesser than the interest rate charged by the financial institution.
5) Delayed payment charges: Sometimes under unexpected circumstances the borrower may not be able to pay the monthly installment. Here for the next month amount as delayed payment is also charged with the amount. The percentage may vary for different lenders.
6) Cheque bounce charges: Penalty charges are levied in case of bouncing of cheque by the borrower.
Keeping in mind these important financial points helps the borrower to be prepared with this extra amount before applying for a home loan. Some private brokers may also charge transfer charges of flat to the borrower or purchaser of the flat.
Advantages and Disadvantages of Joint Home Loans
What to do in Case of Divorce with Joint Home Loan
Feng Shui Symbolism of empty Houses
Advantages and Disadvantages of Joint Home Loans
What to do in Case of Divorce with Joint Home Loan
Feng Shui Symbolism of empty Houses
First time buyers of a home are new to this field. They are unaware of the many offers and options for taking a home loan. The decision of taking a home loan for the first time is stressful and needs lots of knowledge and information regarding the EMI’s, interest rates as well as the capacity for repaying over the years. The internet and media have made it very easy to get loads of information right from under your roof. If one is staying in a rented place or with other family members this becomes a major decision to purchase a home of their own.
One has the option to enquire about various options for procuring home loans. The easiest and one having lowest interest rates may be considered. As also the ones that give extra offers or bonuses can also be considered. All points mentioned and also all doubts regarding loans must be discussed and enquired before hand. Many banks and other institutions are ready to give finance for home loans.
There are quite a number of housing finance companies who would be happy to loan for the new home. Consider their requirements and other details before making the decision of procuring a home loan. Another option to get a home loan would be through a home loan lender. These institutions and companies solely give loans for purchase of home. The procedures have become quite simple now and also there is easy availability of home loans for the common man. T he private lender is also an option as loan amount can be got easily but they may have higher interest rates.
Thus the first time buyer of a home has to consider various points. Loan procedures, interest rates, and EMI’s calculated before going in for the decision definitely helps to plan expenses and the decision makes ownership of a home easy.
Buying a dream home is the best dream for every individual and everyone wants to have a place of own under the sun. Easy availability of home loans as also simple procedures for processing has made buying a new home very accessible. Even the middle class man can avail this offer and enquire at various financial institutions or private lenders and can go in for a loan to purchase a house.
The internet as well as news papers and other media have brought the topic of home loans in the fore front. In earlier days taking a loan was looked down upon and it was not an open topic. People had to do enquiries and various documents were required, which took a toll on time and health of the borrower. Searching for good lenders was also not easy and one had to apply only from the bank in which one had an account over the years. It was difficult to obtain loan without any guarantor as also past record. The most to suffer were the privately held business people and professionals who had no salary proof as some institutions, in order to avoid default in payments, totally refused to give loans other than to the salaried class.
The situation has now changed for good. No longer are the procedures and processing of home loans difficult and also it is open for every strata of individuals of the society. Having property deeds or other proof of financial position is taken and also some institutions do not even require guarantors. There is a lot of competition and now the buyer is the king. People have many options and can compare the interest rates to get the best offer for their loan amount. Repayment schedules can be adjusted according to individual paying capacity and monthly installments can also come to an understandable figure.
Easy availability is the mantra for home loans nowadays. One can search on the internet and find various sites that give full information regarding interest rates, availability and EMI’s. The big decision of taking a home loan has become very easy and one can avail this offer and make the decision of purchasing a dream home right from the comforts of their homes.
11 October 2010
Loans can be taken by any individual as long as they are eligible and have the capacity to repay it. Procedures for taking loan are very lengthy and tiresome as we all have the impression of making many trips to the financial institutions till we finally achieve to get a home loan. The working category of people is lucky as they have many salary and job proofs on record and they can just produce these statements and avail the loan amount. The self employed are the ones who need to prove their identity and financial standing and usually many may not have all records of their statements. Private business people or professionals like doctors, lawyers, entrepreneurs who wish to apply loans may have to submit their assets and liabilities proof.
Let us list down few important documents required by the self employed class for application of a home loan.
Copy of audited financial statements for the last two years: These are very important as the audited documents show the financial standing of the individual applying for loan. It is very important to keep all the statements updated even if one is not wishing for taking a loan as whenever the need arises these documents are a boon and ease out the procedure for applying for a home loan.
Copy of partnership deed or company: These documents are proof of the ownership of company or as partner in the said company by the individual applying for the loan.
Profit and loss statements for the past few years: Here the lender can get an understanding of the financial position of the company or business. Profit and loss statements indicate how the business is running and the repayment capacity of the individual applying for a home loan.
Income tax assessment statement: Filing income tax returns regularly and having these statements on record is an important document required for the application of loan. This amount also indicates the financial standing of the individual as they declare their income and this proportionately corresponds to the amount of loan that can be applied for.
Total information about your total assets and liabilities: The total amount of property and other financial assets like gold ornaments and bank statements. Each institution has their own rules and may require specific proofs for these aspects. Owning a property or home which has a higher financial estimated value than the loan amount being applied for helps to get the amount easily.
Other personal and professional details together with property details and costs: Other details regarding liabilities are also discussed. Other earning members, number of family members, dependents and sick people in the family as well as record of other loans taken before or still repaying. Ownership details of shop or clinic is also considered as an asset.
|Mrs Rizwana Mundewadi|
Banks and financial institutions only give a certain percentage of the loan amount and not the total amount. Usually they may give maybe 70 to 80 percent sometimes even 90 percent considering your past financial record. The amount to be prepared for, prior to the application of loan, is termed as down payment which the purchaser has to pay before applying for a home loan. Deciding on the amount to be taken as loan is an important decision as the borrower will have to pay installments along with interest for certain period of years. Usually loan may be taken for twenty years or less so the individual must be prepared for having financial stability during later period of years. Always there is risk of losing job or death of a family member unexpectedly and the loan may have to be cancelled and property auctioned. But still it is worth taking the risk as no progress will be done without taking certain amount of risk.
It is advisable to pay larger amount as down payment and reduce the amount for loan as the interest charged by the financial institutions is more and the same property can be got at lesser price. It is of course true that only when not possible does the individual opt for taking a loan or if the benefits in other aspects like proving financial standing of the individual. Also if finances are arranged during the loan tenure than it is also possible to opt out from the loan by paying a small penalty fees along with the total amount.
Whenever we hear about the term loan we usually understand that it is an amount taken at a present time for our needs, which has to be paid in installments over period of certain years. A loan is usually in terms of money as cash. There are different types of loans like home loans, medical loans, business loans, property loans, study loans, entrepreneur loans, needs like purchasing a flat, refurbishing our present home, purchasing a second home or just about any specific need under the sun! Loan can also be a boon during unexpected crises or emergencies in the family.
A loan is any amount taken or borrowed from a lender which has to be paid back along with certain amount of interest during the set period of time. It is an arrangement between two parties that is the lender and the borrower usually combined with interest at some future period of time. The lender has certain risk factors involved by lending the amount hence the interest charged along with certain documents or property or gold as mortgage. Mortgage is some asset which has a higher value than the loan amount taken. Here in case of default or the borrower not being able to pay back the loan the lender can take charge of the documents kept as mortgage. Interest rates of different lenders and financial institutions are different and it is always advisable to take a thorough survey of available options and their rates of interest before going in for home loan.
A home loan is an amount that is got by placing some valuable property or other investments as mortgage. Taking a loan and purchasing a home does not mean that the lender gives the total amount for purchase. This is the most important misconception amongst common people. A certain amount has to be given as down payment before hand and then the financial institution or bank can approve of loan for the rest of amount.
10 October 2010
The decision of buying a home is among the priority list in all couples who have just taken the plunge of marriage. They may be at a rented place or with the other family till they have a place of their own. Many a time’s couples who take home loans are seen to be stressed and argumentative due to the pressure of repayment, especially if only one partner is earning. The stress of repayment is too much and may even lead to separation if not controlled as both have to sacrifice many important aspects during the tenure of repayment.
Usually the bickering happen because one of the spouse has taken the decision. The other partner has not been involved in this major financial decision of taking and repaying a home loan. Discussing beforehand about the type of loan taken as well as repayment schedule helps to neutralize some of the stress among the couple. The amount taken as loan must be manageable with the salary of both or one partner although it does give a pinch to ones pocket. Many other aspects of enjoyment and travel will have to be compromised till the loan is repaid hence discussing all aspects and understanding that ‘some thing has to be given up to achieve something’ is very important. Usually the bride has certain expectations from the spouse and may be unaware that the apartment she has just entered as a wife may be on loan. This leads to undue stress and it is better for the spouse to let her know before regarding the financial decisions made by him before marriage. Having a clear talk regarding finances helps to solve many misunderstandings and even makes the bride more supportive of this decision. If the fact of home loan is hidden by her she may not understand where the amount of salary is going and may have negative thoughts about the character of the spouse. Small arguments may heat up and may also sometimes lead to divorce between the new couple.
Having open discussion and talk regarding finances and home loan may make the bride understanding and very supportive. The dream of owning a home may the motivating factor and both may be willing to give certain sacrifices till the repayment tenure of the home loan.
Since time immemorial man has always dreamed of a ownership home. Marriage brings two individuals together and in their new life a new home plays a very important role. Dreaming of a big house with latest amenities may be what everyone wants but it is important to consider the required space and the financial position of the couple before selecting a home. Getting carried away by media and advertisements is possible but having consideration of many factors will help ease out many problems which may erupt during the repayment years. Firstly take note of the financial position and availability of extra money for repayment of home loan. One must list down how to cut down other expenses during the tenure of repayment and the schedules of amount to be paid over the time period. Find out the interest rates for the loan amount. In the market there are many lenders and options available for home loans. Also important to consider the down payment as this amount has to be ready before getting the loan. The other specific rules of individual lenders and institutions must be read carefully as the amount of repayment and time will go on for long. Situations may change due to inflation and one must consider the interest rate accordingly before going in for a loan decision. All documents needed must be arranged for before hand. Deciding on the amount to be taken for the home loan and the monthly installment is a very important decision. Only that amount which can be possible in the salary of one or both must be considered as there are other compulsory household expenses and one cannot let go of basics like food and clothes just for the fact that ‘we are purchasing a home and loan has to be paid’.
|Tips For Newly Married couples - Rizwana Mundewadi|
A thorough market survey is required to get the best deal with a balance of rate and interest. Taking a home loan has become very easy and simple and availability is also good. So your dream home is calling and all the best to the newly wed couple and their dream home.
As a couple steps in the institution of marriage there are already doubts and adjustments required on part of both the spouses. There is also the important decision for many to purchase a home of their own. Starting of the family there may not be enough finances and taking a home loan is the easiest option available to fulfill their dreams. Having doubts is the key to success and it is better to consider all doubts before taking a loan.
Whether they will be able to pay the loan is the most important doubt arising in the minds of the couple. Inflation and the unsure aspect of the future financial position is the seed for this doubt. It is however very true to consider the job and it may also be if help if both the spouses are earning. There is risk involved as no one knows the future but also there are certain ways to deal with the loan taken in case of calamities and unexpected circumstances. The amount to be paid as EMI are to be planned as they are to be given regularly to avoid penalty fees so it is better to accept a loan EMI that can be given leaving a certain amount as backup in case of emergencies. Finances must be planned for the newly married couple and one may consider keeping the need for starting a family at hold. Repayment schedules are calculated beforehand and one has to adhere to the plan. If this is decided it is good as they have the month before to prepare for the installment. The interest rates are too high sometimes and the home purchased goes out of budget over the years. This doubt is also very common and one can have a talk regarding the home loan, their installments every month and the interest rates and comparing various institutions and lenders of finance one can take a balanced decision. As also considering all the payments required like the processing fees and transfer fees must also be discussed prior to the agreement to get hold of the total amount required for the flat.
All doubts must be faced and information searched from financers as well as the internet. Knowledge is the only solution for this. Home loans are a boom to dream fulfillment and one can achieve any dream destination as a home using this facility.
Marriage is an important decision in ones life. As the couple are on cloud nine and enjoying happy euphoric moments of newly married life many are faced with the decision of buying a dream home. Joint family home may be small or the new couple may be staying in a rented house and this decision of purchasing a home takes priority in the wish list. Finances may be limited and the best option available to fulfill the dream of a new home is by taking a home loan.
|Beginning of Marriage and Home Loans- Rizwana Mundewadi|
Home loans are very easily available and nowadays the procedure has become quite simple. Financial position of the couple is the deciding factor before taking this step as this will indicate the repayment capacity of the individual. A good and thorough survey of availability of home loans must be done. Advertisements in news papers , television as well as the internet can give a clear picture about the different companies that offer home loans. Selection criteria is based upon the interest rates applied by each company as well as the down payment required. There is a minimum amount of money required to be given as down payment before getting the loan approved. The total amount of house value only a certain percentage of amounts can be got as loan hence the amount required for booking the flat has to be arranged beforehand.
Having a thorough discussion between all the family members as well as the newly married couple is very important for the understanding and support required during the repayment tenure of the home loan. Getting a loan may seem easy for the salaried couple than the one that is self employed. Certain documents are required according to individual loan givers rules and only those who fit into these criteria are given loan. So it is advisable to have a good survey regarding all aspects before going in for a home loan especially for the new couple as they are at the most important stage of life where dining out, movies, new clothes and travel may be the priority and one may have to let go of some of these aspects in order to achieve the most cherished dream…the one of owning a dream home.