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Buying a home is one of the most expensive investments that you do in your life. Since, the rates of the property is also reaching on a new height, its necessary to take a home loan. So, once you have finalised home of your choice, it’s time to look out for a suitable home loan offer. There are various factors that one should consider before opting for home loan finance from banks. Here are few of them-

  1. Loan Eligibility 

Applicant's eligibility is one of top factors that has to be considered when applying for home loan. Banks judge the applications as per the monthly income of the applicant and the cost of the property. Usually, banks offer up to 80 per cent of the property cost depending upon the repayment capacity of the borrower. However, in a recent notification, Reserve Bank of India allowed loan to value ratio up to 90 per cent for home loans amounting to Rs. 30 lakhs or lower.

  1. Negotiate the Rate:

Count your positives and make sure that you know how to haggle. It is not a very well-known fact but interest rates on loans can be negotiated. If you have a good credit history and have always paid your dues on time, use it to your advantage to show that bank that you are a viable prospect.

  1. Longer the tenure, costlier the loan:

Many experts advise the loan takers to keep the tenure as short as possible. The maximum home loan tenure offered is 30 years. Most people see it as longer the tenure, lesser the monthly EMI is. But you need to see it as longer the tenure, the higher compound interest the lender earns from you. This tempts people to go for a longer tenure. But this choice is not advisable because the amount lost on interest is way too much. 

  1. Documents required for obtaining a home loan

If you are planning to take a home loan, these are the documents that are required for obtaining a home loan.  

  1. Duly signedApplication form with photograph
  2. Id proof- This could be passport, voter ID card, driving license or Aadhaar Card.
  3. residence proof and age proof
  4. last six months Bank statements
  5. last three months’ Salary slips
  6. Income tax returns
  7. Processing fee cheque
  8. Title deeds, buyer’s agreement or any other property related document.
  9. Advance payment of receipt regarding the purchase of flats.
  1. What happens when you fail to pay EMI-

The first thing you need to know that a bank will not foreclose the loan if you defaulted on one or two EMI payment. Loan foreclosure is the last resort a bank would want to exercise. But if you continue to fail in paying your EMIs for three consecutive months, the bank will send you the due reminders of the same. If you don’t give any response then the Bank will send you a legal notice for the same and you will be termed as loan defaulter. 

  1. If you are declared as a loan defaulter-

In case you become a loan defaulter the bank will start the process of seizing your property for which you had taken the loan. Bank can even auction your property and recover their due amount through auction. The bank normally gives six months of time before auctioning off the property. Within the six months, you can approach at any time and settle the things out with the Bank.

How can Acreok help you?

AcreOk has a variety of executives who know everything about the process of home loan, they will let you know the alternative options and help you in Loan restructuring, loan refinancing and will alsotake an Insurance cover for your home loan so that you will not be declared as a loan defaulter.

Owing to the brilliant contribution of our trained professionals, we have been able to achieve so much in a very less time. Our services are highly recognized for promptness, client- centric approach, competitive cost and quality standards.

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