Buying your dream home is a milestone in life, but it often requires long-term financing in the form of a home loan. With rising home prices, home buyers in India are more in need of home loans. However, the process of finding and securing the right home loan can seem daunting to first-time borrowers.

It is important to know all the factors involved in availing a home loan. Researching loan options, choosing a suitable lender, calculating your loan eligibility and managing disbursement and repayment of funds will be covered in detail.

What is Home Loan?

A home loan is a long-term financial commitment, often spanning 15 to 20 years. Hence, choosing the right lender is as crucial as choosing a home. Start by familiarizing yourself with the basics of home loans, including the loan components, and assessing your financial stability to maintain the loan over its term.

Before down payment

If you're buying a new home, verify the builder's credentials to make sure they have the necessary government approvals and the ability to complete the project. Confirm the property's eligibility for a home loan. Remember, banks don't usually finance land purchases; This is where non-banking financial companies (NBFCs) step in.

Choosing a Lender

Don't settle with the first lender you meet. It is essential to compare multiple lenders regarding their application processes, interest rates (fixed or floating), fees and loan disbursement timelines. Make sure the developer is approved by the lender to avoid future complications.

When purchased from a previous owner

If you are buying a property from a previous owner, do a thorough due diligence on the property and the seller, including any legal disputes. Please understand the tax implications and registration cost before proceeding.

Maintain documentation

Keep a record of all documents throughout the term of the loan. Ensure an in-principle approval before making any down payment to avoid the risk of losing the loan if it is rejected.

Communication with your lender

Choose a lender that matches your needs and be transparent about your financial situation to find the best loan. Maintain open communication with your lender, update them on any changes and seek advice when needed. Make sure your contact information is always up to date.

Managing your loan

Plan your finances wisely by opting for higher down payments to reduce the loan amount. Choose the shortest tenure you can afford with the option to adjust to higher EMIs and lower tenures later. Make part payments whenever possible and settle the loan early to save interest.

After completing the loanAfter completing your loan payments, ensure that the closure of the loan is properly documented, including collecting the No Objection Certificate (NOC) and original documents. Check that your credit report reflects a loan status paid within 60-90 days.

നിങ്ങളുടെ ലോൺ പേയ്‌മെൻ്റുകൾ പൂർത്തിയാക്കിയ ശേഷം, നോ ഒബ്ജക്ഷൻ സർട്ടിഫിക്കറ്റും (എൻഒസി) ഒറിജിനൽ ഡോക്യുമെൻ്റുകളും ശേഖരിക്കുന്നത് ഉൾപ്പെടെ, ലോണിൻ്റെ ക്ലോഷർ ശരിയായി ഡോക്യുമെൻ്റ് ചെയ്തിട്ടുണ്ടെന്ന് ഉറപ്പാക്കുക. നിങ്ങളുടെ ക്രെഡിറ്റ് റിപ്പോർട്ട് 60-90 ദിവസത്തിനുള്ളിൽ അടച്ച ലോൺ നിലയെ പ്രതിഫലിപ്പിക്കുന്നുവെന്ന് പരിശോധിക്കുക.

Following these steps will not only make the home loan process easier, but will also lead you to financial security and home ownership success.