Getting Housing Finance In India? Know These Procedures Before Applying

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The increasing popularity of housing finance or home loan in India is quite understandable with status quo of its huge demands from a large number of loan consumers in the country. Whether you want a finance to purchase a pre-constructed home or a plot of land to build a home of your choice, the demand of housing finance is always there among a large number of customers in the country. Moreover, home extension and home renovations purposes are also well satisfied using housing loan from any financial institute in India. However, as a customer, it should be your top priority to know some procedures such as documentations and eligibility plus processing charges which are correlated to acquisition of housing finance in India.

To begin with the home loan eligibility criteria, most Indian financial institutions have drafted preconditions including repayment capacity, income capacity, number of dependents and credit score for any potential borrowers. Some famous banks like hdfc, sbi, icici, Axis bank and others require their borrowers follow eligibility criteria in order to qualify for home loan.

Credit Score: Having a bad credit score will never make you an eligible for any home loan applicant that you might apply to a financial institute. Credit score is judged on the basis of a person's entire financial transactions with previous or any existing bank or housing finance company in India. If you bring upon yourself heavy outstanding loans, it implies that you are irresponsible to timely payment of the loans and hence, your bank doesn't consider you for its housing loan. Hence, you better clear off all your pending loans beforehand to get a hand on the proposed loan.

Income Capacity: On the basis of your yearly income, the bank decides whether or not to sanction your home loan request. Generally, your entire yearly income should be more than Rs 140000 to get qualified for home finance. Most people make a smart move by clubbing income of their employed kindred such as parents/spouse or children. With the combined income, they increase their income to an extent where a bank considers sanctioning home finance. Remember, a bank is always preconceived with its profit-gain motive and so considers your healthy income as potential advantage to earning premiums out the home finance.

Documents: It is your responsibility to produce all essential credentials to your bank in order to get qualified for home finance. These credentials may include your personal and financial information such as age proof, id proof and resident proof together with bank statement and other credentials.

Processing Fees: They are such charges that you must pay for regardless of whether or not your loan is approved. Processing fees are non-refundable even though you are not qualified for your home finance. Other than processing fees, there are also some hidden charges like stamp fees, lawyer's fees and others.
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