|Home Loans Simplified Facts|
04 March 2014
The new trend noticed is that many couples are opting for home loans even before the marriage. This is a great way as single individuals have less commitments and can also save maximum capacity of their income by cutting down on expenses before marriage.
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. With so many facilities available today many couples also opt for getting a home loan approval before marriage.
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 , especially your would be spouse, 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.
One can also save and start with repayments early even before marriage so that the financial repayments amount some what reduces at the time of marriage and you may have already paid some of the EMIs even before tying the knot!
Rent a home for carefree living today with proeprty prices soaring higher and higher and maintenance costs of properties also shooting up, rented livng is making way even for those who can afford housing. No longer considered taboo rented living is a simple yet judicious way to financial planning and management.
With house rent been offered in thousands and lakhs of rupees to corporates according to your post in the company people are free to choose the best locality near their work place offering posh luxury homes with fully furnished and having latest amenities on rent. Living in rented houses is no longer a taboo subject and people have accepted this new trend of living in a rented home. People do know your position and financial position and living on rent no longer reflects your financial status and position.
It does work out fine if you are not attached with the dream of owing a home. You save every month the amount that would go into your home loan and invest this amount in a fruitful venture or investment option. Paying an EMI every month for a small flat and that too for many years is just not practical now adays. With the tsunamis and earth quakes pondering every now and then the future has become unpredictable ,so just enjoy! when your home owner increases rent move on!
The west has been showing constant change in values and progress financially and as we all know buying a flat in the States or any foreign country is so expensive people prefer staying on rent. There are so many advantages in this as they save on the commitment of a home loan and since the pressure of repayment is not there they can enjoy their income and save accordingly. And as the situation changes they can shift to another locality. This trend is going on and as homes have become unaffordable and buying a home on home loan is becoming more and more of a dream unreachable due to the heavy amounts needed as down payments.
Let us try to understand this new concept in home living. Since homes cost more than a crore and your life's most precious years go in the tied down feeling when you are bound with the repayment of a huge home loan, people are trying this new age mantra. The sum amount of a crore is too big and when you invest this sum you are assured of some income every month when invested in a good financial institution. A good financial consultant or financial planner can help you to plan your life according to the finances available. Since the future is unpredictable people are getting scared to commit for say 15 to 20 years ahead with a home loan.
The policies are changing and the rules for lending and borrowing are changing constantly and it is always understood that borrowers are always at the receiving end for any changes and they have to shell out the extra money to balance any changes in rules on loans.
So now people are accepting the way of living of the west. The culture of living in rented apartments is the latest trend going on and as many upper end companies offer good home rent amounts it is also very easy and convenient. You save your precious finances that come into your home every month in form of monthly income, gold is another one upping the financial investment trends, and also an important part is that there is no burden of a home loan that is hanging constantly over your head!
What more another fact, you do not spend lavishly on decor every few years, which is a non returnable expense, dead investment, which you will not even get back in any form while selling the place!
|Club your Home Buying and Home Loans|
Builders and home loan lenders are open to the idea of having group booking so that they get the benefit of offering larger home loan amounts and you all get the benefit of lower rate of interest which in turn reduces your every month EMI amounts.Buying flats together can be a tempting offer to your property service provider which can benefit by selling large number of flats at a single step.
Since home loans are of a much larger amount and also the repayment period goes on for a longer tenure you have to think carefully and plant your home loan. The most easiest and safe mode used by many borrowers of home loan is to get together and increase knowledge regarding loans.
You can get lots of information from your friends and colleagues who can enquire at different places regarding availability of flats and at what rates. Regarding home loans also you all can find out different information and each can get different quotes from the lenders.
Now after all the information you can mutually select the housing fiancé institution that offers you home loan at cheapest rate of interest. Also the other perks and concessions available can be divided among the group. there are many group benefits that all of your group members can avail and if the housing finance company is getting many new borrowers of this high amount like home loan they sure will bend their loan lending rates and also offer other perks for the group like free club house use for few years or reduced administrative costs for all the borrowers of your group.
friends and society members also can avail this offer and mutually decide upon the lending institution. It will also benefit you in terms of conversation and negotiations when you go in a group. The lenders have nothing to lose as they have a wider margin of profits and you as a borrower can avail many benefits and save lots of money from your home loan.
NA plots Non Agricultural Plots for sale, with buying homes becoming out of reach for many and home loan rates shooting the sky there is another feasible solution coming up. Buying of land.
Land purchase is another option where people are opting to purchase land on the outskirts or in their native place and as their budget permits they build their own bungalow, ground plus one floor, duplex or even some get the approval and build tall buildings on this land.
|Home Loans Simplified Facts|
1)First see the documents whether the land has clear title. The owner has to have clear title of the land they are selling. The land must be on name of the owner, or seller, and if there are a group of owners they must all be mentioned in the deeds and approval for selling by all of them.
2) The land must be NA plot, non-agricultural. The land must have the permission from the Government to build houses and must be clear of the title of agricultural land. All land is agricultural on the outskirts and approval is required to allow construction to come up. If not you will have to get the approval by submitting all the documents and get the approval before you can begin construction on such agricultural land.
3) Selecting a plot consider the environment, surroundings and facilities provided by the seller. The local village is near or far off. All daily necessities can be taken care of like electricity, water and in fact there have been cases where many plots are sold when there is no road or access to the plot!
4) Loan facility for purchasing NA plots is also available with many housing agencies. Many sellers have tie up with housing finance companies and you get loan to purchase land or plot. If you wish to give the total payment do ask for a reduction in the cost of plot, you can avail great offers and concessions when you are willing to make total payment at one time for purchasing a plot.
5) Get receipts of payment after your deal. You have to be careful if the plot has not get the approval of NA from Government and whether this is in progress you get a memorandum of understanding by the seller which states that the land has been transferred into your name, the buyer of the land.