All About Types Of Home Loan
The home loan refers to a contractual arrangement between the borrower and the lender in which a property is purchased by the borrower and the lender holds the same property as the protection for the amount borrowed by the borrower. There are various types of home loans available on the market, and before applying for one, you should have sufficient knowledge of various types of home loans.
The following are the various forms of home loans that are currently available on the market:
- Home Buying Loan Credit
These types of home loans are used to purchase a new property.
Home loans for change
These loans are used to execute in-house maintenance and reconstruction works that have already been purchased by the client.
- Home Loans for building
For these loans, the building of a new house is accessible.
- Loans for Home Extension
These loans are issued for the expansion of an existing client house. For instance, adding another room in the house, etc.
- Loans for Home Conversion
The loans available are for those who have already funded a home loan for their current house and wish to purchase and transfer to another house for which some extra funds are required.
The customer’s current loan to transfer to the new house is a home conversion loan, which requires the extra amount needed by the customer. This removes the need for pre-payment of the previous home loan borrowed by the client.
- Loans for Land Purchase:
These loans are required for the purchase of land for development. Such loans are also available for investment purposes.
- Loans from bridges:
If you want to sell the current house and buy another one, the bridge loans that you will take from you. The loans from the bridge help fund the new house before a buyer is found for the new house.
Eligibility for Home-Loan Taking
An individual who is 21 years of age or older is eligible for a home loan to qualify for a home loan, but he must have a daily income.
In order to get home loans, there are some documents that a salaried person has to send to the bank. Documents required by a bank to approve your home-loan include.
- An Application with a photograph form
- Evidence of registration and evidence of residency
- Current Wage Slip
- Form16 or Paper on last income tax returns
- Last 6 months or annual bank statement
- Cheque processing fee
Minimum loan and minimum Home Loan Term
- The maximum loan is 85 percent of the house’s expense and it is also dependent on the client’s repayment ability.
- The maximum period for home loans is up to 20 years and is also estimated to keep the customer’s retirement age in mind.
Leading Home Loan Providers (Click to Apply)
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