Should you buy your dream home by taking a home loan?
Planning to buy your home is probably the biggest decision you will make in your life. While you may not have the entire amount to buy your home now, you may need to plan and take the right home loan. There are many questions that could puzzle you. Should you buy your dream home by taking a home loan? What is the process of buying a home? How to get a home loan on your income?
There was an interesting video from Aditya Birla Finance Home Loans that may answer your questions. You can see the video below:
Does one need to buy their home by taking a home loan?
If you are a low salaried person, it may take a lot of time to accumulate money to buy your dream home. However, if you can plan it well, you can accumulate a small amount for the initial down payment and consider taking a home loan and buy your dream home in the early stages of your professional life.
What is the process of buying a home?
- Identifying your dream home.
- Identifying sources of funding
In case you cannot finance your home on your own, you should explore options of taking a home loan.Evaluate how much of the loan you can afford to take and whether you would be able to meet the monthly EMI payments to banks or financial institutions.
How to get a home loan on your income?
While it may be easy to determine how much of a loan you may need, you need to be aware that you would be eligible to take only a certain amount of the loan based on your income. E.g. Some banks offer home loans up to 5 times of your annual income. Some may offer 75 times of your monthly take home as home loan eligibility. You can use a good tool like http://trueworth.co.in from Aditya Birla Finance Home Loans which can help you in identifying home loan eligibility and more importantly, your true worth.
How does the home loan process work?
- Approach any bank or financial institution for home loan.
- Submit documents required like Identify proof, Residence proof, Income proof like salary slips, Form-16, last 6 months bank statements etc.,
- Submit property documents and related link documents.
- The bank / financial institution would determine your home loan eligibility.
- The bank / financial institution would also assess property value. They would do legal verification to ensure the property is free from legal encumbrances.
- Your home loan is sanctioned. You need to sign the home loan agreement.
- Actual home loan disbursement would happen during registration of property in your name.
How should you explore home loan options?
There are several banks or financial institutions which would offer home loans. However a few consider various parameters like current income, future expected income, other incentives/bonuses which you would get every year, etc. This would help you to get a higher loan amount. You can check the Trueworth website of Birla Home Loans which offer one such home loan.
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Should you buy your dream home by taking a home loan