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14 August 2011

What do Joint Home Loans Mean in Financial Terms Meaning of Joint Home Loans

 Meaning of Joint Home Loans
Sometimes it becomes very difficult to purchase  a home of your own with so much cost of a single flat. The middle class are accepting that purchasing their dream home is becoming much more difficult in terms of finances. The income ratio is not proportionately growing as the rates of property,  and unless you have additional sources of monthly income it is difficult to go in for a home loan.
Let us turn this into an positive note. By going in for a joint home loan you get tax benefits as well as share the burden of repaying the home loan. What does a Joint Home Loan mean? In a joint home loan two or more members share the ownership title of the flat or property that is being purchased on loan.
Lending companies offer loans to people who jointly apply for home loans and get the approval. Repayment of the loan amount is shared by both borrowers. This is becoming very common and spouses as well as close siblings and cousins also try to get a joint loan. Approval of a joint home loan depends upon individual lending companies and home loan banks. Many home finance companies have rules for eligibility and they also review past history and detailed finances of both the co-applicants. Since two people are responsible for the repayment the approval procedures may be tough and strict. The lenders will have to scrutinize the financial assets, accounts, investments and qualifications of both the applicants of home loan.
It also becomes difficult for the home finance company to recover EMI in case of default since two people are responsible. Hence it is right from their part to be reluctant in approval of such loans. Though if you both are qualified and working at a good position the lenders would be happy to lend you the amount as they have minimum risk of failure in paying the EMI. Thus it would become easy to own your dream home with collective finance if it is not possible for a single individual and going for a joint home loan may be the best option available.
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