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The Home Loan Guide For First Time Homebuyer Needs

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The Home Loan Guide For First Time Homebuyer Needs

A lot of people dream of purchasing their own homes. Nevertheless, in the 21st century buying a suitable property isn’t everyone’s cup of tea. If you are purchasing a home for the very first time, having a clear picture of the procedure is of utmost importance. In addition to this, you should have an understanding of first time home buyer requirements. Therefore, let us get started without any further ado.

Explaining Home Loan

For anyone who is new to a home loan, it is basically a form of financial help available for people who are short of funds and need to purchase a house. At present, a home loan can also be used if you opt for refinancing. There are different types of home loans available. We have explained all of them below.

  • Home purchase loans: These are the common types of loans opted by people. This is where an individual applies for a loan by getting in touch with a lender. Once the application is approved, the money is credited to the borrower’s account. The money can be used to purchase a new house or get a new one made.
  • Land purchase loans: As the name says, this loan option is used to purchase a specific land whether residential or commercial.
  • Home construction loans: This loan type is given to people who are planning to build a house on their own land. Even though the applying procedure is a bit daunting, people do get approved for the same.

Now that you are familiar with the loan types, it is time to understand the eligibility criteria.

Eligibility criteria for a home loan

All lenders have eligibility criteria that a buyer has to fulfill. Below are the basic ones mentioned.

  • The borrower’s age should be between eighteen to sixty.
  • You have to be salaried or a self-employed person.
  • Your monthly income should be sufficient to opt for a loan.

With the eligibility criteria also come the important documents that should be submitted by the borrower to the lender.

Documents needed to apply for a home loan

Every individual applying for a loan has to go through the same documentation procedure before the amount is disbursed. Below are them.

  • A filled loan application with correct information.
  • A photograph of the borrower
  • Identification proof like residence proof for pan card.
  • A cheque for processing fee
  • Bank statements 
  • Income proof 

If you submit all the required documents, the lender will move forward with the procedure and there are high chances that your application will be approved. However, make sure to use a monthly mortgage calculator in order to find out how much rate of interest, down payment, and monthly EMI you will obtain. The calculator works wonders because you get an estimate of how much you might end up spending.

The Final Thoughts

We hope this piece of information has helped you understand everything about the first-time home-buying procedure. Now that you are familiar with the essential information, it is time to make a move. If you are planning to purchase a house, keep in mind all the information mentioned here. This way you will experience a hassle free and easy loan procedure.

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