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24 January 2011

Easy Home Loans Repayment Guide

Home loans are an easy way to purchase homes. Easy availabilty of home loans and cheap loans have made the buyer very lucky to make purchases at their own free will. Taking a loan is one thing and repaying is another. Let us discuss few tips to guide the loan taker for repayment of the home loan.
Easy Home Loan Repayment Guide
1) Plan the purchase of the home:. Timing is most important. Be prepared after marraige or before and start saving for the loan repayment.
2) Invest in short term and long term investments:b Short term for paying the down payment. It is advisable to keep these investments with flexible option of liquid cash. Long term to consider the inflation and also to pay the heavy EMIs in case of emergencies in later years of repayment of home loan.
3) Assess critically your financial condition: Dreaming of a big bunglow may be good but do you need the bigger house and is the financial position so strong to repay the large sums of EMIs every month.
4) Critically analyse your area requirements: Which area flat will be suitable for you and which rates per square feet are affordable within your budget.
5) Latest amenities like club house and swimming pools: I have personally observed swimming pools in later years become dumping trash bins! do you lead a life style where you use such amenmities. Otehrwise they are a waste and you pay more every month for this . Even after the purchase you keep paying maintenance for these amenities.
6) Other expenses: Very very important. Home loans are not the only expenses. Always keep in mind that life goes on. Taking a loan does not stop you from basic expenses which are compulsory like food, clothing, entertainment and so on and so forth! Also if starting a family then these expenses will also add up in the monthly expenses.
7) Other loans: It may be possible that you have gone in for a personal loan during renovation, or maybe a car loan for a preowned vehicle. Keep an account of these loans and always remember that taking a home loan or any othe rloan comes to a much higher figure with added interest amount.
It is most advisable to keep the habit of taking loans to the minimum and only when required. Also try to bring the loan amount to the maximum lowest possible for easy repayment of home loan.

19 January 2011

Home Loan Transfer Cheaper Options

Home loans are made very easy and all the costs and administrative fees are included in the beginning of the deal for a home and applying for a home loan. The interest rate is either fixed or flexible on the loan amount to be repayed. How does this calculation go and is it in the benefit of the buyer or the builder, needs a thought beforehand.
Whenever the buyer of a home goes in for a home loan the excitement for purchasing a new home is there and it is difficult to understand all the fine details worked out during the deal for the house. Selecting fixed interest or flexible interest is an option available for the buyer and taker of home loan and these calcultaions have to be done to understand the repayment mode and the amount of EMI. Many times the builder has the option of fixed interest for a certain period of time and later years this amount is to be paid on flexible interest considering the time lapse and inflation. If the interest is fixed then the amount added as interest is much more as the builder and loan lender has to consider the inflation factor over the years involved during the repayment of the home loan.
Before going in for fixed or flexible interest one must consider our repaying capacity for the loan. If the salary is on higher side it would be best to take a higher EMI and repay the loan faster in short duration. If the salary is limited and the buyer and home loan taker has other commitments also then they prefer to go in for flexible interest as the first few years the EMIs are low and as their salary increases ove rthe years they can afford paying the higher EMIs.
Whatever the reason it would be wise to see the interest added by the loan lender during the later years. If it is too high an amount one has the option to cancel the loan and go in for a cheaper option. The loan taker may have to give certain penalty fees to opt out from the original loan but still the effort taken will be worth it if they can get a cheaper option and loan lender who gives loan at a lesser interest rate. This is called loan transfer and the buyer can transfer his loan to a different financial loan lending institution. If they had earlier taken a private loan they can later go in for government banks for this need, and if they had applied from government institutions then they can go in for a loan from a private money lender if it works out to be cheaper.

Correct Timing forTaking Home Loan

Home loans are an easy way to fulfill our dream of owning a home and that too at our time. Saving money does not help much as the property rates are rising and till we reach saving the amount the home goes more out of our reach. When is the right time to take a home loan?
Everyone knows that the decision of purchasing a new home comes after marraige or maybe starting of a family. But from the other side we also know that property prices are shooting the sky. This price rise in the city for homes maybe sometimes jacked up by builders. Today many of the houses in the heart of city have become out of reach for the avaerage customer. How does an middle income group family go in for a home loan? will it be possible for them to pay the heavy EMIs?
It is better to enquire about the property prices before going in for a purchase of a home and applying for a home loan. As of today there is more awareness of creating budget homes and government is also stressing on the fact that 2011 be made the year for 'home for everyone'. Hence before going in for a home loan whether from private loan lenders or government banks,  it would be wise to wait and consider if the property prices may stabilise. Consider all options available for home loans and the best deals on home loans. All areas are being developed fast and even the outskirts will merge with the city within a few years. It would be wise to go in for a home loan which can be easily repayed and with the amount manageable.
Search for lowest deals on homes and lowest deals on home loans . Plan the purchase of a home and applying for a home loan in advance. Consider the area required according to your family's requirement and it is not necessary to go in for a very big house if you cannot afford it just because your neighbour's are doing so!

12 January 2011

Best Investment Second Home Loans

Home loans are easily available and nowadays second home options are also available.Property is the best form of investment and many builders are promoting the concept of second homes. There are many advertisements every day of constructions of cottage homes, villas, duplex apartments and farm houses on the outskirts or hill stations in the newspapaers and TV.
Home loans availble on second homes are also easily available. Many of the borrowers go in for mortgaging their previous home as security for the home loan. If the property has more value than the second purchase then they can get home loan by mortgaging their property. This is better if they do not have any option otherwise it is best to keep aside the down payment and go in for small personal loans. It is always understood that repayment of the loan amount includes interest amount and today interest rates are very high. This amount becomes a substantial one on payments and the buyer ends up paying very much than the original value of the place.
Also it is better to survey and enquire about such projects , especially those tyhat are outside and far away from the city. Many a times they don't have proper infrastructure and the buyer is left in lurch.  Electricity, water supply and security hassles also have to be enquired about before going in for a home loan for second home. Second home loans are the best way to invest in property as rates are increasing and also he family gets a place to enjoy for change of climate and environment. And who knows some of them may even settle down in their second homes away from the daily hub dub of the city.
While taking second home loans by mortgaging your previous property it is understood that the lender has the original documents of the property and in case of failure to repay they have the right to auction or sell the property to recover the loan amount. Hence it is advisable to do financial planning and also purchase second homes from reputed builders so that there are more  chances of the projects being completed on time.  You save precious time and interest amount if the project gets completed on time. And if the project gets delayed than you have to keep repaying the loan amount even if there is no sign of possession of the flat.
Best form of investment nowadays is in second homes and second home loans are also available easily. Due to property rate shooting up it is the best form to increase your financial position and ensure financial safety for the future.

Easy Income tax Benefits on Home Loans

It is observed that there are income tax benefits on the loan amount and this helps to ease down a little bit the pressure of repayment. Many builders publicise the fact that loans on their constructions have tax benefits and the borrower is lured by this plus point in buying the flat.
According to 80C clause the taxable income benefits are availble to the home loan taker. They can avail tax benefits as this is the taxable income. But the most important point that is not explained by any one is that only homes that have completed construction and the buyer takes possession of the flat then they can apply for tax benefits. If the building is under construction and the borrower has taken a loan he does not get any tax benefit on the loan amount untill he takes possession of the flat.
There are certainly many benefits in taking loans from reputed financial institutions and every lender has their own rules and interest rates applicable to the home loans. One can plan buying of the flat from certain reputed builders and even those buildings that are under construction. It is important to not ethe past history of the builder and their past successful projects.
Financial planning is essential to avail tax benefits on the loan amount. One can consult a tax consultant before going in for a home loan and consider all the aspects for choosing the best home loans.

09 January 2011

The Many Illegal Constructions and Home Loans

Home loans are easily available from many financial loan lending institutions. There are offers and discounts and very special best deals for home loans. Hence the borrower now has many options and is faced with lots of choice for selecting the best home loans offered by the lending institutions at best interest rates. Now if the construction is not legal and does not have all the required permisssion documents for construction than it becomes difficult to avail a home loan. Builders have become very alert and they only offer loans on reputed builders and those constructions that have all the legal procedures and government critera fulfilled. If the construction or the site is debatable and the legality is under question there may come a stay order from the government and the project may get delayed or even completely stalled. Hence the loan lender loses on precious finance and also time. Many financial loan lending institutions have certain rules for offering loans. They only offer loans on houses from reputed builders. They also consider the previous history of the projects completed by the builders. The area in which the house to be purchased is also important. Some negative areas are not offered loans by certain loan lending institutions due to bad image of repayment of the loan amounts. Some institutions also offer loans for houses only in their respectable areas and avoid offering loans for unknown builders.
They have procedures for scrutiny for under construction sites as well as completed projects on housing. Only certain projects that have chances of completeion on time and from reputed builders are offered loans easily. Hence the indivduals repayment capacity is also one criteria for getting loan approved but also the selection of house from legal constructon is very important for loan approval.

Can I Apply for Home Loans?

The concept of home loans is understood as taking a loan byt he borrower froma reputed financial institution that lends money for home loans. On selection of a home and area where the flat is being purcahsed one must also consider the legality of the building. Not all loan lending institutions give loans on all buildings, and not all individuals are eligible for taking a home loan.
Every financial loan lending institution has certain rules and regulations. They also have categories for individuals that can be offered loans. Some give only to salaried class, some give self professionals , and some consider the monthly income of the individual for lending a loan amount as home laon. Some of the loans lending insitutions offer on fixed interest but only a certain amount whereas some have increased amount of loan but on a higher rate of interest. There are also some lending institutions that have special offers for selected professionals like doctors and teachers, retired personnel, army officers and other categories. Here they have a set format of procedures and documents required for the processign of home loans. It becomes easier for the borrower to avail such offers as there are also special discounts offered on such offers.
The very important criteria any financial loan lending institution will consider is your repaying capacity. Either salaried then how much money can you keep aside for repauyment of the loan, and if bussinessmen and self professionals then their income proof and bank account slips indicates their repayment capacity. Also owning a property that has more value than the amount applied for loan is considered as mortgaging the property for loan is also a option for applying for a home loan. Fresh qualified professionals who have just joined job also can apply for a home loan depending upon their monthly income and their position in the company.

Home Loans and their Importance

Property prices are reaching the sky. It is becoming nearly impossible for buyers to afford a place under the sun in the city. The suburbs and outskirts of the city are fast developing into latest construction sites and many builders are trying to put forthe the idea of budget homes. In such times home loans are the best option for owning a dream home.
Prices of property are ranging from a crore to 10 crores and more. Depends upon the area and place where the houses are purchsed. Every area has a standard 'area per square foot' price fixed. Some constructions amy be more due to availability of better construction and facilitites offered by the builder. Even when both spouses are working it becomes very difficult to payback the loan. The salary of one spouse has to be kept aside for repayment of the loan. If only one member is working it becomes more difficult as the family also has daily household expenses to cater to. For a loan in crores they have to pay the EMI of  more than 50,000 and maybe even i lakh. How can an person who earns 50,000 repay a loan? it is very difficult and hence people are opting for places on outskirts or suburbs where the rate of houses are comparatively low than in the mid heart of the city.The borrower has to survey the market for best home loans available.
Home loans have come as a very lucrative option and when financial planning is done effectively one can purchase a home on loan without extra hassles. Many a times working individuals cannot save, however much they try, to make an outright purchase of house, hence they have this option of taking a home loan and fulfilling their dream. Even government and other big builders are paying more importance on providing home for every citizen and nowadays the idea of budget homes is coming in the limelight. The year 2011 is especially dedicated by the government and reputed builders fo making affordable homes. Let us wait and watch how these people fulfill the dreams of the many lakhs of people dreaming of owning a roof under the sun!

04 January 2011

Home Loan Preapproval and Bank Procedures

Nowadays it is being seen that many buyers bring home loans preapproval letters from  a bank. This assures the seller that the customer is in the position of buying the flat and has the financial capacity. Many banks give preapproval letters but this is a tedious process and this is valid only for a certain period. The buyer has to purchase a flat in the given period maybe six months after getting the letter of preapproval from the bank.
For this letter banks require a lot of information, mainly regarding finance in the family. Income tax returns of the past years have to be submitted. Your bank account statements that show your inputs and out going amounts are also cross checked with the bank in which you have an account. Salary slips of the past few months are checked for proof of salary. Even the identity proof of an individual like pan card and telephone bills for address proof also are considered. The credit card history also will come under scrutiny by the bank officers for understanding the spending habits and any cases of default.
When all the documents are scrutinized then the bank will give a document of preapproval and here the term of validity of the document s also mentioned. Mostly it is valid for six months after the preapproval date. Some banks also mention at what interest rate they are offering the loan. This is an assurance for the seller of the flat that the buyer is a serious buyer and is interested in purchasing the flat. Also since the validity of this letter is for six months the seller is also willing to negotiate on the flat rate and total amount for the serious buyer.
Though the preapproval letter is an assurance that your loan will be approved but it cannot be guaranteed and one has to always keep other options also before going in for buying a home. It is always better to have few final lists of banks and lending institutions at hand to select from. Several banks also charge a preapproval letter fee and some also mention interest rate with which the loan is being approved.

Quick Home Loan Approval and Quick Purchase of Home

Easy availability of home loans is being advertised but still all the procedures do require certain time in months. What is the easiest way for a quick loan approval and purchase of a home?  Getting a bank pre-approval  letter from the respective bank under consideration.  Many banks and financial home loan lending institutions are ready to assess the financial status of the buyer and give a home loan approval letter.
If you can get a home loan approval letter you are very lucky. The bank undergoes scrutiny of all your financial assets and liabilities. Your credit card statements, income tax returns and pan card details. Your ownership property or car and other assets are also considered. Since this letter clearly indicates s that you are eligible for the loan and this institution is willing to give you a loan of the required amount the seller is assured that you are a serious buyer.  This is like a magic letter and facilitates the process of buying a home. The seller is also more than happy on seeing the preapproval letter as they know that the client has the amount required to purchase the flat.
As the seller is assured of the loan it is also best to consider loan lenders within that area of the house to be purchased. Many builders and sellers are comfortable with only some financial institutions and may doubt the standing for unknown financial lending institutions. Past history of lending institutions is also important and it is also best to consider home loans from the banks referred by the seller as they are aware of the procedures.
Getting a bank preapproval letter will facilitate the procedure for home loan approval and all this will ensure quick purchase of a home. Being prepared with the down payment beforehand and comparing best home loans from online banking institutions saves not only time of the buyer but also gives the best deal for purchasing a home and the best home loans.

Home Loan Preapproval and the Borrower

The meaning of preapproval is a situation where the lender is assured that the borrower has certain amount of assets and stands a financial capacity for repayment of the new loan that is to be taken. Home loan preapproval has many advantages for the borrower as it helps the lender and seller of the flat to know the financial standing of the client.
Here the borrower has documents of salary of own of also other working members in the family. There are other assets like shares, bonds and fixed deposits that have a certain monetary value till date. As also other assets like other property and carapplying for a home loan,repayment capacity,lender,loan approval also have a financial value. Thus a borrower before applying for a home loan and searching for a home can discuss with the lender their financial standing and loan repayment capacity. Here they can come up to an amount that the borrower has at hand every month that can be used for the repayment of the new loan. These documents after consideration by the lender are scrutinized and then a loan approval letter can be got. This document is an indicator that the borrower has the capacity to purchase the selected property and has the capacity to repay the loan. This is termed as the preapproval letter and is an indirect assurance for the seller that the borrower will get the loan approved and it is just a matter of time for the other procedures of loan approval.
This loan approval letter can be taken at any place to purchase a home and it is an indicator that the loan is under processing and will be approved. However one has to understand that this is not ‘the loan’. It is just a preapproval letter but this does not guarantee that the loan will be 100% approved.

Secured Home Loans and its Importance

Home loans have become a familiar term and secured home loans are the best for many who do not have regular income documents. For private professionals it is best to place some property or car or any other documents as security against the new loan. Loans can be secured or unsecured and both types of home loans are available for the borrower.
Secured home loans can be availed by anyone who has a property or home that has a higher value than mentioned in the application of the new loan amount. The private lender or government nationalised banks professionals go through the documents that have been considered for security for the new loan. In case of vehicle the total value of the care is estimated according to its price in that particular year as rates fall with every year of use in case of the car. Taking secured loan helps the individual to use their own property as an asset against the new home loan. It is also good from the side of the lender as they have the original documents of the property or car in their possession till the loan is repaid.
In case of failure to repay the loan EMI it becomes difficult as the borrower may also have to give away their property. The lender in such cases of default has the right to auction the care or property and recover their loan amount.  Though it rarely happens as nowadays financial planners help to plan the EMIs and loan amount according tot he budget and financial status of the borrower. Only that which is possible is availed and even the emergencies are taken into considerations and they have plan for warding off the time during crisis and failure to repay the loan. Concessions  can be availed in case of secured home loans as it is beneficial to both the lender i.e. financial nationalised banks and lending institutions as well as the borrower i.e. the applicant and taker of the home loan.

03 January 2011

Unsecured Home Loans and the Borrower

These types of loans are taken by the borrower by applying for the home loans from an home loan lending financial institution. Secured home loans allow the borrower to take loan against security of property or car or any other asset. Unsecured home loans are nor secured against any property of the borrower.
Unsecured home loans can be availed in many different types by the borrower and also under different packages available by different financial institutions. Unsecured personal and home loans can be taken as Credit card debt, personal loans, bank over drafts, corporate bonds, or credit facilities. Each different means for taking a loan has different term applicable to the approval of the loan. Though it has become very easy to get a loan there are different interest rates applied by different financial loan lending institutions. It is best to compare loans and also select the cheapest and best personal or home loan available.
Compare the interest rates of the loans and also the time tenure allowed for repayment of the loan amount. Online home loans and personal loans are available and one can compare online all the different available options before selecting the best loan.  One can also avail demand loans that can be got for a shorter period of time and also the repayment tenure is much smaller. But they are easily available. Many institutions offering unsecured loans can be compared and their terms and conditions gone through before selecting the best home loan.
The borrower has many options and on comparing the different home loans can select the best package offering the  cheapest home loan.

Best Secured Bank Loans

Home loans are a very good opportunity to fulfil your dream of owning a home in the city. As the rates of property are shooting up home loans come as a breath of fresh air for many. Loans can be availed by private financial institutions or government banks. Let us discuss secured home loans in this article.
Banks offer loans at a fixed interest rate and are willing to negotiate on the other terms.  It is always better to take loans from a nationalised bank as they are established and also in case of emergencies and default by the borrower they are understanding and are not into any harsh measures for recovery of the loan. Since it is understood that loans have to be taken considering the time lapse for more than five years ahead the future is always unpredictable. Anything unexpected can happen like a death in the family, financial losses in business or even loss of job. Here the borrower of the loan comes under a tight spot. To ward off this time of crises it is better to communicate to the home loan lender institution about the crises and take into consideration the options available for coming out of this crisis. Usually private lenders have been known to recover the amount through unsafe measures and the client is left in lurch. One may even have the fear of losing the property by failure to repay the loan amount.
Some of the lenders are understanding and may consider waiting for certain months without paying the EMI till the personal problem is over. Concessions can be given for certain months and later the accumulated amount can be submitted to the loan lender institution. There are rules but under special circumstances they can be moulded. It is therefore very much advisable to collect information regarding the lending institution and their past history. One can also keep some asset or property as a security and avail the home loan. These are secured home loans and as the loan is being repaid the lender has the security documents of the property or car or any other asset.

Secured Personal Loans

Personal loans are available at the click of a mouse. The online banking has made it very simple nowadays to avail loans without many hassles and also the procedures are quick and easy. One can get a personal loan within 24 hours at the click of a mouse.
Loans are every helpful and anyone can come under the need of taking a loan.  A secured loan can be got by pledging certain property or car against the new loan. The lender has to submit their original documents of the vehicle, property or other financial documents like bonds and fixed deposits as an assurity for taking the loan. One has to make enquiries regarding the best secured personal loans. Which bank or financial institution is offering loan at the lowest interest rate and which institution fits in the individual borrowers list as the cheapest and best secured personal loan. One has to compare personal loan rates and select the best personal loan rates from the available choices.
Online banking has many facilities that help to avail loan against one’s credit card as the lender is aware of the history of the borrower. Personal loans can be approved without any questions asked if it is under a certain amount slab fixed by the lending institution. If the owner of the house or car needs loan they can apply for a personal loan against this property. The only risk here is that the property is under their hammer and in case of failure to repay the amount the lender has the authority to recover their loan amount by selling or auctioning it. If the borrower has a fixed income or both the spouses are working then it is very easy to get a personal loan as there is security of two incomes coming regularly every month.