The first home is always sensitive, as well as an emotional, issue for every person as it involves fulfilling one’s dreams with one’s financial constraint. Most of the common working-class people need a huge financial aid for buying a new home. The provisions of home loans from banks or other financial organizations are helpful in such cases. However, they need to be careful while seeking the first home loan. There are many complicated criteria to be fulfilled for loan approval. A careful research on such procedures helps them in getting the first home loan without a glitch.
Essential Steps to Obtain the First Home Loan
 |
| First Home Loan |
1. Ascertain the Necessary Loan Amount – First, a loan seeker should decide the exact amount of home loan he needs to buy this home. The current financial condition, including the total amount of savings and assets, has to be valued. Generally, loan repayment amount is deducted from the net salary. Hence, he needs to assess his total annual income, all the expenditures incurred, any previous loan dues, other EMIs and saved amount for determining the instalment he can pay. The future prospects of the growth in income may also be included while evaluating the financial status.
2. Check the Eligibility of Loan Seeker – The credit score has a huge influence on the loan amount. The current credit score of a loan seeker is usually calculated to find his eligibility. If this is in negative, the probability of getting a loan is nil. Online websites of banks provide the online eligibility criteria calculator. Using this, the buyer can get an idea of his credit score, and thus the approximate loan amount that can be availed in a financial institution.
3. Research on All Home Loan Providers – There are multiple banks and financial organizations everywhere repayment tenure. Some banks also offer discounted interest rates for first home loans. So, it is best to the list all such details and checks their credibility. After narrowing down, choose the bank that meets the buyer’s capacity of repayment.
4. Decide on the Deposit Value – The buyers/borrowers are generally expected to make some deposit for taking the home loan. The value of this deposit should be high enough to get the home loan. In the case of such deposits, the home loan interest rates may also be lowered. Moreover, the borrower is saved from paying the mortgage insurance. Therefore, the buyer must have sufficient funds to make this deposit to utilize the above-mentioned facilities.
5. Repayment of Earlier Loans – If there are previous loans, it becomes harder to get the calculated amount of home loan. It is better to close the earlier loans before applying for the first home loan. The loans with higher interest rates should be repaid first, to increase the credit score.
6. Submit all Documents for Loan Approval – All the necessary documents should be submitted for verification. A pre-approval certificate is provided after satisfactory verifications of the documents. This approval is valid only for 6 to 12 months, during which the first home loan should be applied. This application will then be further processed, and then the amount will be sanctioned.
 |
| First Home |
The selection of a right home in accordance with the location, size and other essential facilities is very important. But, the buyer also needs to consider his financial options such as home loan more carefully. Hence, it is advisable to take the help of a financial expert for seeking the first home loan.
0 comments:
Post a Comment