If you have decided to opt for the Home Loan facility from a leading online lender to purchase a home of your choice, there may be some Housing Loan FAQs in your mind.
If Home Loan query such as – does the eligibility depends on your income, or how much can you avail is bothering you, this post will help you know the answers.
Answers to Some Key Home Loan FAQs
Does the Loan Eligibility Depend on Your Income?
The answer is yes! One of the key Home Loan eligibility parameters that your lenders will determine while processing your Home Loan application is your income. The higher your income is, the higher loan amount you may get. What’s more, having a consistent employment history may also help you avail the housing loan at a lower rate.
How Much Down Payment Do You Need to Put?
While it’s a common thing to note that lenders will only provide you the loan for up to 80% of the cost of the home that you intend to buy, you will need to arrange the rest. The remaining amount is what is called the down payment which needs to be arranged by the loan borrower. They should start arranging for it from early on so that they have enough to put down as the down payment.
Is the Home Loan Interest Rate Fixed or Floating?
Presently, there are two types of Home Loan interest rate variants that you can avail while taking a Home Loan in your city. One is floating rate and the other is the fixed rate. Opting for the floating rate would mean paying higher or lower EMIs as the interest rate will be governed by the prevailing market conditions. On the other hand, opting for the fixed rate of interest would mean paying fixed Home Loan EMIs. If you have a large income source, you can opt for the floating rate and if not, you can opt for the fixed rate.
Is your Lender offering Prepayments and Foreclosure Facility?
Before finalizing a Home Loan lender, other two key things that you need to look for is the availability of the prepayments and foreclosure facility on the Home Loans. Yes, you should have the allowance to make some prepayments towards the loan so that you can trim the principal and make smaller EMIs. Also, there should be a provision to foreclose the loan before the scheduled tenor if you have the money. Most of the leading online lenders don’t ask for any charges if you avail of these facilities.
The Bottom Line
These are some of the basic yet major Home Loan FAQs that many borrowers seek answers for. Now that you are aware of them, you can easily prepare for the ensuing Home Loans with confidence to purchase your own dream home. All the best for the online Home Loan application!