Things First Time Home Loan Borrowers Must Know http://www.jmdhomeloans.com/
Living in Mumbai has become a little expensive. With the property rates going higher each day, it has turned the tables and people are now living on rent and started saving in order to buy a home through home loans. And there are many home loan providers in Mumbai who offer good interest rates and a longer tenure for loan repayment. So now when you are planning to buy a house in Mumbai you also need to take care of the loan procedure. To make this process hassle-free, we have collaborated a few things which, first time home loan borrowers should know.
1) Principal amount – It is the amount you would need to purchase a home. For an example, you want to buy a house of 20 lakhs, for which you have already saved 4 lakhs. The remaining 16 lakhs will be the loan amount – making the total as the principal amount.
2) Down payment – This is the amount that a bank or loan provider requires from a loan borrower. We can take the example mentioned earlier. The 4 lakhs that you save would be the down payment in this case. It can either be in a range of 15% to 30% of the amount of the property you are planning to buy.
3) Loan Eligibility – It is the amount which is eligible for the loan applicant. It depends on the monthly and yearly income of the applicant. 4) Co-applicant – A co-applicant can be your joint applicant. It can be anyone from your family like, father, mother, brother, spouse or sister. And if you have a co-applicant who earns a regular income, in terms of salary or business increases loan eligibility.
5) Types of interest rates – Every mortgage loan provider has two types of interest rates. Floating and fixed interest rates. Floating rates keep changing and fixed rates stay constant.