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29 June 2011

How Much Loan Amount can I Borrow for my Home Loan?

Ever wondered what would be the criteria for home loan approval and how much amount would the loan be sanctioned for? You can always dream of a bungalow or a duplex flat and since home loans are available easily you feel you can get the amount required as loan. Well this is not true for all cases. Let us understand the point of view of the lender who offers home loan to the borrower and how do they calculate the loan amount that can be offered as loan.
Each individual has different pay scales and also every family has different expenses and monthly requirements. The home loan lenders usually go through your credit card score and your incoming pay checks proofs to get a hold of the total amount of money available for you. Monthly expenses could be understood by your lifestyle and needs of other members, along with the number of dependents in the family. Your spending habits will indicate how much you can save monthly, and your trans union score from cibil will make your financial standing clear.
Even when all these documents are in place many times we notice that one individual has got the home loan for a larger amount approved whereas his counter part who his working in the same place has got a lesser amount approved as home loan. Here the most important criteria for the lender is to keep a check on the monthly income or total incoming finance of the individual. Usually an EMI would come up to not more than 50% of the salary, or the total income. According to this figure the lender will calculate the home loan amount offered.
Even if you have a good income there are certain basic calculations that a lender goes through before offering a loan. Suppose you have other loans then some amount will also be spent as EMI for repaying that loan. Let us take an approximate figure of say, 10%. Your monthly expenses would come up to say, 20 to 25% of your income. And also considering some investments like insurance policies, funds and other bank commitments we say, about 20%. This leaves us with about 45 to 50% of your salary. This is a judicious combination and calculation for financial planning. This criterion is taken as your repayment capacity and the total amount of loan offered will be with consideration that you can repay the monthly EMIs easily.
By keeping this in mind the borrower can consider only those housing projects that come up within their budget. And apply for home loans in this range of amount only for better chances of getting your loan approved.  Your other assets and investments do play a major role in your loan approval so also the place where you work and your position. Though this seems all but natural that you would select a bigger home and finalize a large sum as home loan, it would be better if you assessed your requirements first. Precious money remaining from monthly expenses can be diverted as other investments and increasing your other assets. It would be wise to take what you can manage easily on your platter as loan to avoid long term stress and as we all know the lenders are out there to offer large amounts as loan, as they get high profits in terms of interest, but the borrower has to be critical in narrowing the figure of amount as home loan, as they have to repay the loan with interest, and that too on time!. 

Buying a Home on Loan- Is This a Joke?

Is this a joke? is it really possible to take a home loan and repay this amount in the given schedule by the lending institutions?
With so much competition amongst builders and loan lenders the customer and buyer of the home has a variety of offers to choose from. Right from lavish villas to homes of 2 or 3 BHK are available along with latest amenities and facilities. There is also lot of hum dum about budget homes and redevelopment plans of various societies are nowadays in news. Is this all the real picture?
Personally when trying to search for an investment property or a second home, I really found it very difficult to narrow down on any option. Though from the outside there are so many options and homes available in all budgets, true picture is there aren't any homes for many to buy. Whenever you narrow down on any cheap property either it is illegal or the builder has bad reputation of not completing projects on time, here you can expect a much lower rate and negotiations also but in the end there is doubt whether you will get the promised home and that too on time!
Why? they are very costly! are there really any budget homes , I doubt . With so much mention on this sector having homes at affordable rates, where are the affordable rates? No wonder people are following the wait and watch attitude, we really don’t have any choice.
People who wished to purchase new flats have waited and waited, patiently for some prices to drop but I don't think there is going to be any change in the market. What the finance gurus had predicted and people had expected has not come upon, and the prices are rising at  a steady rate. Many of the buyers have waited for prices to stabilize or drop , but there seems no way for such a thing to happen.
Even the farthest property rates have come to 4,000 or 5,000 per square foot. After calculating area of the simple flats this comes to minimum of 45 to 50 lakh rupees. Lowest among them being 25 to 30 lakh rupees. Buying a one bedroom flat of 425 or 500 square feet has now become the minimum requirement of any home buyer and there still aren't many choices in this sector. Consider an example Mr X. earning 15,000 Rs. per month. What will the person take loan and how will he repay it?
Arranging for the down payment will be another hurdle as this sector will not be able to save that much for the down payment also. Suppose both spouses are working then it will come to 25 or 30,000, or maybe there are other siblings who also wish to combine the amount and purchase then there is a possibility of buying a 1 BHK house. Selecting the right place will matter if you have a low budget for buying a home. Some areas have low area per square foot rate and here the homes may just about be affordable if the borrower is eligible for taking a loan. Paper work and documents also must be in place.
With builders pouring flats with latest amenities and all facilities the buyer will definitely wish to avail all these facilities, but at  a lower price. Even after making both ends meet the family satisfaction level also has gone down when they purchase a smaller flat. The borrower is tied down with the pressure to buy a bigger house whether they need it or not. Resale flats are going on if the buyer gets a lower price deal on the home. Otherwise the home sector is stagnant for some time with lower sales every year.
Got the clear picture that a borrower needs to earn 1 lakh Rs or more per month to afford a home loan. A down payment of 8 to 10 lakh rupees and then paying a heavy interest on the loan makes the total cost of the property you buy very high. And that too after owning the flat on loan the interest paid will not be reimbursed when you go about selling the flat, since this procedure will go considering the area per square feet in your location and the high interest amount will not be considered unless of course the rates shoot up very high and against the proportionate trend then you will benefit from taking a loan and buying a home.
Be realistic. The budget homes making lots of noise have disappeared. The nano homes in budget range really gave hopes to many.  Having flats in range of 4 to 7 lakhs, wonder what happened to the nano homes? All working project shows villas and bigger homes.
The need of the hour is to have budget homes. Be it for investment purposes or for staying. Also I think many of the amenities are that which we can do without. Hence the early phase of buyers was lured with these facts but now the buying of a home has become an informed decision. Guys you need to really lower the rates, people understand only money and when they get more than they pay for, there will be movement in the graph. Government needs to accommodate and allow concessions to builders so that they are encouraged to build budget homes, and kick start the selling’s!

17 June 2011

How Can Financial Loan Lending Websites Help You

The internet shows various lenders and financial institutions with lots of information and article son their websites. The customer gets information by going through the various websites and can make an informed decision of choosing the right home loan. What do these loan lending websites offer and how do they work?,, and many other financial advisory websites have great informative websites with personnel online who can guide and help you regarding your queries about home loans and in fact any other loans. When we peruse the websites we see online EMI calculators, interest rate comparison charts, offers from different banks and lending institutions and also list of different banks. Here the borrower can fill up his requirements of laon and get an rough estimate about the monthly EMIs or other fees involved during loan. After filling up the tenure chart along with interest rate offered by the name of the bank one can easily get a figure which will have to be paid as EMI(Equated Monthly Instalment).
Since everything is online there is quite some clarity and transparency in all figures quoted and the borrower can get as many different offers and quotations from lending institutions at the click of a mouse. Trying different options like tenure of loan period 5 to 20 years the borrower can see how much interest rate he will have to pay for longer tenure and how much concession he gets for a loan of shorter period.
You will also be assured to get the best interest rates on your home loan as these websites have tie ups with many leading financial institutions. These concessions also do help you save money which you will have to negotiate if you go directly to the lending institution. Since these websites do not charge you any joining fees you are free to look up the site as many times and also try various options online without any hassles right from your home.
Right from the eligibility criteria to the list of banks and the interest rates offered by them on amount of home loans even the EMI calculator will help you get the total amount you need every month to go in for a loan.  Even comparing different banks and lending institutions becomes much easier without showing any commitment to any specific bank. Many of these general financial banking websites or advisers have a neutral attitude and do not in any way promote or dis promote any lending institution. The customer is the king and each borrower has his custom made loan for him according to their repayment capacity and financial position.
The best part of these Home loan calculators is that you get the picture in front of you what is going to happen later. Say after a period of 5 years, 10 years and end of your repayment tenure say, 20 years what will be the figure you will pay as EMI, how much interest you would have paid over the time span of these 20 years and how much total would this home loan cost you. Since interest rate is added to the principal amount, this total will give you the value of your house. You can get the picture of really how much your home costs as compared to if you purchase it directly without going in for a home loan. 
Remember that these financial websites are for reference, guidance and convenience for the borrowers and having these quotations and figures in no means guarantees your approval of home loan.

10 June 2011

HSBC Home Loan Payback Offer – What Is This?

With the event of advertisements I wonder how the customer is spoiled for choice. The property rates shooting up fast how the lenders are wooing the buyers to purchase homes and go in for home loans. The newest among them is the HSBC pay back offer that is valid till 31st July 2011.
With a big hoarding seen on the road that you earn money from your home loan made me brush up about this offer and gain some insight into this. According to the offer the bank has an ‘payback offer’, or rather the employees claim this is a bonus to loyal customers to keep along with this HSBC bank loans. According to this offer the borrower is paid back 50% of interest paid as refund on the 12th, 24th , and the 36th EMI (Equated Monthly Installment). Let us consider a figure, for example if your 12th EMI at the end of the first year is Rs. 50, 000, then you get a refund of Rs. 25,000. Accordingly 50% of the interest paid in the 24th and 36th EMI will also get refunded.
Plus and Minuses of HSBC Offer:
This offer is valid for home loans as well as for loans against property. Here the refund or reimbursement if 50% of the interest amount and not the total loan or principal amount. Often when we see the advertisements on roads or in news papers the first though is that you will get 50% of refund on loan amount. This is only on the amount of interest in the EMI. Though it is a fact that interest amount is higher in the beginning EMIs, hence the offer just to indicate the benefits for the customers.
Where does the reimbursed money go? do you get it? Well this amount is directly transferred into your HSBC bank. This is after the EMI has been paid and after a period of 30 days or the money is deposited in your account at end of month. Which gives us another reconsideration that the borrower has to be from this bank? You need to have an account here, maybe with some amount of deposit for opening a new account.
The amount offered as home loan varies from 5 lakhs to 5 crores or even more if you have the repayment capacity and your assets are much higher than the loan asked for. If the offer is so good how much will they charge as interest rate? This is 9%, lower as compared to many other lending institutions. Usually home loans are got at 11 or 12% interest rates and HSBC is offering at 9% with a mark up of 1 to 2%. This is floating rate of interest applied then how much will they increase later on? This question will definitely come up during later tenure of loan repayment but the now is good, too good as the customer will feel special and never ever do we get anything as return and that too happily from the lender itself.
How about prepayment charges? Penalties and other costs?  Other banks do have a 2% or 3% charge as penalty fees but HSBC offer indicates that after a year you can prepay 25% of the amount without any penalty. The question here is you are not allowed to prepay within first six months of the loan available. Also what when a borrower skips an EMI? Well then this offer is not valid, quite justifiable from their view point, to keep the customers paying regular amount as EMIs, and assuring the bank of regular incoming money as asset. Keeping the borrowers hooked by this offer will allow the bank regular customers during period of inflation and also the borrower will be tied with this pay back offer.
The interest rates as compared to other banks and their administrative and processing fees are another point we must consider before making any decision. With a 2 to 3% processing fee you have to pay this in any case or any lender for approval of your home loan. This offer is too good and since it is for a limited period people who have already decided to purchase homes and have completed their survey with different quotations from banks will definitely go in for this HSBC pay back offer.
But, just in case you get a lender who offers you a home loan with lowered interest rate, according to financial advisers, say 10% or less than , will this offer win? Don’t think so, as the loan tenure, EMI, processing fees and interest rate all these points, or the total loan costs, will give an upper hand to the lender who offers home loan on lowered interest rate! Do remember to negotiate against processing and administrative costs, even if there is a promising offer, you can end up saving in the beginning of your home loan!

Am I Selecting the Best Lender? Take a Pencil and Paper to the Lender.

With easy availability of home loans the customer is spoilt for choice. With many private and government financial loan lending institutions coming up, the borrower has to choose the lender that suits their needs and is the best for getting a customized home loan. A best lender in the market is a general term and varies from individual to individual. Taking a home loan from a reputed builder will assure you that the trip of repayment tenure goes smoothly.
Do your home work well. Research well. We go and buy onions that are Rs. 10 per kg with so much care and while taking such a big decision of crores we immediately go and apply to our nearest bank or a lender whom our friend or colleague suggests and get the loan. Find out as many offers and institutions from which you are eligible to get a home loan.
After getting a reasonable list of lenders who can offer loans short list a few lenders first. Try to consider all aspects that matter in the short as well as long run regarding repayment of loans. Their administrative costs, extra expenses, penalty charges in case of failure to repay an EMI on time, and of course the interest rate the loan is offered and tenure of the loan, that is for how many years the loan is offered.
Research online and offline. Ask friends and relatives about their experiences with these home loans and their lenders. These experiences will give you an insight into the experiences involved during repayment of home loans..
Take free loan amount quotes and find out home much money is available as loan and for what period. Write down all offers and amounts on a paper. Always written documents and figures are proofs and the lender cannot back out with these offers after you actually go for a home loan. Whenever you negotiate put the figure on paper. Let the lender note down all amounts on the paper and keep this stored carefully for later reference. In case the lender backs off with any offer and discount you can show them the figures quoted by them and this will help save much time and hassles for another negotiation.
Comparison is the next step. Do not be tempted to select the home loan lender that shows lowest rate of interest. Check other aspects also. The loan repayment tenure, amount offered as loan, the monthly installments, facility for clubbing installments, late payment fees and other hidden expenses.
Negotiate and bargain because even if the lender reduces a small percentage you will save a lot. Many times lender are known to offer an amount and later back off with the offer. Even the borrower does not remember the exact amount and figures and hence has to accept the deal form the lender. What happens here is you go for enquiring about loan and you are offered a figure, extra charges, taxes and transfer charges as well as the interest rate. The lender calculates in front of you and shows you a figure you have to pay as EMI. If you have visited high interest home loans lender before you are very happy with the quotation and immediately begin procedures for collecting documents for applying for a home loan.
When you visit the lender for final conversation and application another figure is offer to you. Suddenly some new additions are seen in the list of payments. How can you question about these? and the lender reassures you that all borrowers have to pay these and that all lenders take this amount. Since you do not have any recorded figure and amount on paper you do not have any proof and cannot negotiate with the lender, and also now since you have made all the preparations you go about and accept their offer even if it is at a bigger rate of interest. This is how the theory of lenders works but the borrower has to be alert. While taking quotations taking a paper and pencil will help a lot. All figures are on paper and you can carry these papers when you are going for the final talk between the lender and the borrower and make this a peaceful and stress free discussion and approval of home loan.

Be a Qualified Buyer - Quick Approval of Home Loans

For any home loan approval going through the right steps matters a lot. All these will affect your chances of home loan approval and how quick does this happen. One of the tried and tested formulas for getting your home loan approved is to be a qualified buyer and then proceed with the application of home loan.
One can go in for pre-approved home loans. What does preapproval of home loan mean?  Nowadays many financial consultants and advisers are available to give the right financial advice regarding investment and procedures for applying for home loans. A representative from the lending institution or any private financial adviser can assess the value of your home, other property and your assets and investments. This will give them and you the correct financial standing and how much amount can be applied for as loan and how much EMI can you afford at this stage. The financial consultant will then provide a report of all these figures and they will also go through your credit report. Thus getting a right picture of your income and expenditure will give you an amount which you can remove monthly from your incoming money.
Now this does not mean that you are assured of getting the loan, but this will avoid all the delay caused by applications for larger loan amounts and getting rejected by the lenders. If you have good figure of savings and are willing to increase some more amount for this then you can get a loan of a slightly higher amount than noted. Also some lenders may be willing to cross the line and offer a larger amount as loan if your financial standing or post is good and even your qualifications are great. Whereas the other also may be possible, even if your home assessment quotation is a higher amount if your incoming salary is not stable and you resume shows many job changes in less time the lender has the option to refuse your home loan application.
Get the assessment of your home and property, your assets and investments and liabilities. If your financial status is clear on paper then and lender will find you the best borrower and be very happy to lend you money immediately. Thus going through an financial advisers will help you to get your home loan approved quickly, and knowing your financial repayment capacity will give you a budget for which you can afford a loan and repay it easily.

03 June 2011

Collecting Money for EMI

The first step towards purchasing a home would be to get your loan approved. This is easy for employed individuals and some what elaborate for self employed. No sooner is your loan approval completed, begins the time of repayment. Few EMIs are taken collectively in advance and after a month or two the regular repayment schedule begins. The most important question faced by many is how to collect money for EMI?
Very first comes the house warming party. Can you do away with it? if you can well and good. If you have kept aside money for this then also well, if not then consider having a small function compared to a bigger one.  One can have a small religious function with close friends and relatives , and if this is not your priority then it would be advisable to do away with these social (eating your finances) expenses.

Gifts and vouchers from friends and relatives must be used effectively. Usually after marriage there are tons of gifts collected and many are in numbers, they end up in the attic! It would be advisable if possible to suggest your family and relatives to give in cash as this will help you to repay your loan and collect money for future EMIs.
If you live on rent take care to keep aside this money before hand to avoid any problems later on. Take loan according to your repayment capacity. Also consider the deposit money you have paid to get the home for rent, which you will get as you shift in your own home. While shifting your furniture try to minimize the costs of private movers, and you can take help of friends or relatives for shifting to your new home.
The new home interiors and coloring can also be done in simple minimal cost. Remember you do not know about leakages, walls cracks, taps malfunction and blockages in drains. After spending a lot for interior decoration if there are any problems you will have to repair these, a major expense.  Also when you begin living you will learn about your specific requirements and choices. Furniture and other aspects of decoration can be well understood after you begin living in your home. You can begin with wardrobe or cupboard and bed, so also for children's bedroom go for simple furniture and later make other things according to your need see how much you will save!
Save as much as possible- by this I mean all the members make a strong commitment towards achieving this goal. Repayment becomes easier if everyone does their bit. Right from saving electricity to cutting down phone bills everyone can do their bit. Remember these bits and coins will go a long way!  every member will get into the habit of saving and this will have a long term effect for the finances of the family.
Cut down on extra expenses- the extra sari or the extra dinner out can wait. These expenses though look trivial go on adding and amount to a large figure. Can you go out for a simple dinner out instead of a full course dinner in a big restaurant? Think what you need and what you can do without.
Club your investments to get a correct picture of your finances. By this you will understand the total amount of money coming in the house and writing down the total expenses will guide you where to cut down and which expenses are compulsory.

If possible keep aside one spouses salary. Try to reduce expenses and compulsorily come upon a mutual agreement to keep aside one salary. This will give you the amount for EMI and you will not have to think of collecting this amount every month.
  Keep some amount as savings every month. In cases of emergency this amount will come handy and your EMI, loan repayment will not suffer. When you are going in for a home loan consider this very important aspect and take a loan within your means.
Start saving and collecting money before taking a home loan. So go ahead and pay your EMIs happily.

Simple Comparison - Personal Loans and Home Loans

When you have to select the option of taking a home loan the very first question that comes in our mind is why not go in for a personal loan. This will be easily available and with less hassles. As well all know many financial loan lending institutions offer personal loans and that too at attractive interest rates then why go in for a home loan?
Research the internet and ask family members and friends especially those who have taken personal loans about the interest rates, the formalities and requirements for approval of such personal loans. Many institutions also offer personal loans at very short notice and even reputed private banks like the icici and other nationalized banks like State Bank offer personal loans. Here they see only the past financial history and track record of the individual borrower. Their credit card rating and income and assets are considered and immediately these loans are got without any hassles and personal loans are also termed very quick loans. The most important hitch here is about the interest rate with which these loans are offered. These are definitely more than any other loan rates. With a telephonic conversation an account holder or card holder can get a personal loan of certain amount, no questions asked, and that too within certain hours of time. 
If you need a quick loan then personal loans are the answer. Another important aspect here is that though you get the loan very fast and without any hassles you have less repayment period. You are given a time limit to repay the loan hence your EMIs will be on the higher side. This type of  quick personal loan is good for people who have financial backing or double income and can repay large sums as EMI keeping aside their monthly incoming money or salary for other household expenses. Here they get to repay the loan amount quickly and can own the property soon.
What about home loans and their interest rates? Documents are required and also processing time is more for approval of home loans as compared to personal loans. And we also know that administrative charges apply for home loans which the borrower has to arrange before approval of the loan. Home loans are the cheapest till date as compared to any other loan. Interest rates for home loans are still competitive and lower than any other loan. Here the borrower gets precious time and money to repay the home loan as the repayment tenure and EMIs are adjustable according to the individual borrower and their repayment capacity. EMIs are comparatively smaller than personal loans as the schedule for repayment falls in 10, 20 or 30 years depending upon the loan amount and the age of the borrower along with their qualifications and job status.
Both types of loans have their good points and bad points. Personal loans are very good when you have a tight crunch suddenly and can come out of this with some money immediately. So if you need cash right away then personal loans are the answer. But if you have to repay in installments and that too within your budget then home loans are better. In fact for buying a house, only home loans are the best option available till date. Personal loans are good for smaller amounts of money and when you have to spend crores for a flat then home loans are the best option to choose.

How to get Home Loan for People Living on Rent

“A home for every one” has become the motto of the Government nowadays. Keeping in mind this there are many options available for people who live on rent and who do not have the assets and finances to purchase a home of their own. Many lending institutions and mortgaging companies are willing to lend home loans to such individuals keeping in mind their limitations of salary and other liabilities. A way for every individual is created and these financial advisers know just how to go about the process of selecting budget homes and applying for a home loan.
Take advice and ask friends and relatives of a good financial adviser or lender. Also consider the internet for advertisements of financial advisers and lending institutions who offer loans to low income group individuals. Here you will save the time and energy of thinking about how to go and purchase a home of own and these are experienced people who will make a way for you keeping in mind your individual financial position, preferences and limitations.
Go in for home equity loans. Here the home you are going to purchase will be the security for your home loan. But remember that this only will be possible when the house you are going to purchase has to have a value of more than you are borrowing a loan. Time will take care of this as property prices are increasing fast and the value of your home also will increase with time if it is a good project from a reputed builder.
Lenders are promoting various schemes to target the buyers from different strata of the society. Rent to own Programmes are taking a good move as the borrower does not have to take loan. If they can get to collect only 30% of the value of the house then some mortgaging agents and financial loan lending institutions can help them to purchase the flat. The only point here would be the flat is in the name of the lender. The flat for some years, that is till the loan amount is repaid, is given on rent. By getting this monthly rent from the individual the lending institution will cover their monthly installments and once they are over this the flat will be transferred to the owner.
Look out for distress sales and buy cheap properties in suburbs could be another option if you can manage to save small amounts of money and try some lenders who are willing to offer loans for low budget homes. Before committing anyone and paying their fees kindly check and recheck about the purchase and sale deeds. Many properties advertised as sale may not be in real and you may be cheated after going in this deal. Also see the title of houses on resale and go in for a deal with clear title. Also when taking financial advise from an adviser do not follow anyone blindly. They may have a degree in finances but you are the right person to take the final decision of what is best for you and your family. Do not go in for deals that seem too good to be true.
So all those who dream of owning a home there are many options available and also home loans can be made available for low income and low budget homes. You just have to find the right lender and the right loan repayment schedule.

01 June 2011

Home Loans for Disabled People

Property prices are rising and there is more demand than supply in this field. Still it is a fact that every individual dreams of owning a home and all this can be possible by getting a home loan. Loans for every one and own a home is being heard by all but all these are in a general term. What about people who have suddenly become disabled or are handicapped to purchase a home, can they get home loans? Whom to approach and how to go about it?
Disability can be inborn or sometimes due to an unfortunate accident. Whatever the reason for your disability every individual has the dream of owning a home. Many times the handicapped individuals relatives or family handle all their finances. If the person is partially handicapped and can independently handle all his financial dealings then he can follow his dream and find a way to apply for a home loan. Though the finances may not be that high but there is always a home for everyone. Many Government schemes are read about daily in the news papers and also many reputed builders like the Tata are going into building low budget homes. Many private builders are also following the example of Tata Housing and are going into redevelopment of older housing societies or building low budget houses for targeting the masses.  Hence nowadays whatever your budget there is a home for everyone out there.
First the home loan borrower has to keep record of all their assets. In case one spouse is working then they can present this record for application of a home loan. If they have property, family heirlooms, gold, or investments then all the better, as these can be mortgaged to get a home loan. Many financial loan lending companies will be willing to offer loans to disabled individuals if their finances are clear and on paper. Even gold can be used as an asset for getting a home loan. If they can collect some funds for down payment then the approval of a home loan would become easier. Many times disabled people get monthly allowance from the government and also some of them get Government jobs through the Government quota for disabled people. If these salary slips or income proofs are intact then they can apply for a home loan.
Any private lender will always consider your credit card ratings for approval of any loan along with your monthly income and incoming finances proof.
In case the person has had an accident and this disability is temporary then they can provide proof of previous salary, qualifications and assets like car and other property papers. Their savings, investments and other financial details will make their standing clear and even if at present they do not have a job the lenders can assess the borrower’s repayment capacity. The lenders can calculate the financial position of the borrower and come to a reasonable figure that can be offered as home loan. Here they can also go in for mortgage loans and the lender can keep the new home as security and offer loan against property.
Their personal savings and investments can come handy for application of a new home loan. If they are working they can also go in for a personal loan from their employer without interest. Friends and relatives also would be able to help in this matter by suggesting home loans from lenders with low interest rate or interest free home loans. Many lenders offer special allowances and options for disabled people in order to help people achieve the dream of owning a home. Consider various schemes and offers from lenders and also lenders who consider offering loans to special individuals. Care must be taken to be realistic and purchase a home for which they can afford to repay the instalments every month. And also keep in mind the compulsory expenses every month before going in for a big home loan.
A critical financial assessment is a must and being realistic will help you achieve this dream. Remember that working towards your dream will be the first step towards achieving it, and your disability must not be an hindrance if you have planned finances. The lenders will only see your repayment capacity and this is all that matters for approval of home loans.

Online Home Loan Calculators - The Facts

With the onset of the internet banking and paying off of all financial deals online, even home loans have become much easier to apply for. Nowadays many internet banking sites and financial loan lending institutions have online home loan calculators. With this available online you can easily get a calculated amount of EMI you have to pay if you go in for a certain amount of home loan.
How to calculate all these figures and what are the advantages of online home loan calculators  will be discussed in this post. Each website has different forms and online calculators to find out different things regarding home loans. All these have slots to fill up where any borrower can fill up their income and expenditure and amount available for repaying the loan or savings and assets. Then the total figure of loan available will come up in the slot.
How authentic are these is one big question? as far as I personally feel they may just be an guideline for a lay person to understand his finances and come up with an idea of how much loan they can afford. This may just be an beginning enquiry as there are many variables and differences involved. Each borrower has different requriements and financial priorities and hence these calculators may just be an guideline for further development regarding home loan application.
There are many advantages of online home loan calculators. Here many lenders and nationalised banks and private lenders have put up online help. Any borrower can get his personalised loan questions answered. Even phone numbers are given for guidelines and help lines are open for 24 hours for getting queries answered. Many online home loan calculating sites also have expert advisers who help you to understand how much loan you can apply for and how much it will be possible for you to repay within your financial capacity without much stress. They may also have representatives who can come up to your place and give free advice regarding home loans. All this information can be got right from your home at just a click.
The most important handicap of this online home loan calculators are that they do not consider many other aspects like the age of the borrower and the property applied for the home loan. As we all know under construction properties do not involve repayment of principal amount and only interest has to be paid as pre- EMI. Even age of the borrower is another very important aspect as the older borrower is considered with a critical eye from the lender's point of view. They have less productive years and thus will get home loans having higher EMIs and for a less repayment tenure. Simple slots require you to fill up your monthly income, and no mention is made of whether there are other earning members as this will make a substantial difference if the other spouse is also earning or there are other family members who are willing to repay the loan together. This increases the total incoming monthly income. Here the individual can fill up total monthly incoming money after calculating all the incoming amount monthly. Even other investments and assets are to be considered,  for this also,  will increase your financial standing for approval of a home loan.  Illegal constructions are not eligible for loans officially, though many private lenders may be open to this aspect  if other proofs of the borrower are available, though this loan may be available at a very high interest rate. Also the most important aspect which comes up is there is absolutely no mention about processing charges and other fees that are to be paid by the borrower for the application and processing of home loans. This calculations may sometimes give a misleading picture and the borrower when applying for a loan personally may get another fact and another figure. Always remember that nothing in this world is free, the lenders some how manage to take this amount from one place or the other, and they should since they have staff to maintain and other administrative charges involved during the processing of the loan. But this is better if they mention it before hand to the customer.
There are many sites who are now mentioning that these figures are for informative purposes and just for getting a basic structure of your loan repaying capacity and amount available as loan, and in no terms to be taken as the final amount to be got as home loan. Some how these calculators have become very popular on online financial websites as there is no fear on the part of the borrower and no risk involved, they can at their own convenience type a few details and get an rough estimate of the figure available as home loan. They can see adjustible loan tenures, repayment schedules and different structural formats for repayment of the home loans at a glance. They can select different variables and try out different options for repayment. Even consider paying off the loan within a small time frame work with large EMIs or consider a longer repayment tenure with smaller EMIs and check out the details. All this knowledge helps to choose the right home loan tenure and the comfortable loan repaying amount or EMI.
What if you want to pay off the loan earlier, pre-closure of home loans? again this is not mentioned on the online calculator. The penalty fees and other administrative charges are not mentioned anywhere. What if the borrower is not able to repay an installment due to some reason, or may club some EMIs to pay a larger amount, all these aspects are not considered in the calculator.
Thus we can see that though there are certain weak links with these home loan calculators they are the best for a first timer who has no knowledge regarding EMIs and home loans, loan tenures and loan packages, and for and the second home buyer who has lost touch with latest facts and figures. One can also go online and ask questions regarding home loans and get them answered by expert financial advisors and bankers who can guide you. Here the borrower also has many choices about different loan lending institutions and they can choose the best home loan lender who has an attractive package of offering home loan at lowest interest rate. With this opportunity of online help and advice many can think of buying their dream house and that to from the comfort of their home!