A home is anyone’s and everyone’s desire. It is a place where one shuts out the world to relax and be himself! It is also a necessity to block off the harshness of nature when it comes and to have a tête-à-tête with one’s loved ones with whom he lives in harmony.

To begin early, as a family, to have a home is practically everyone’s aspiration. In olden days, a home was a natural inheritance from the parents to their children. But in these difficult days of single unit families, jobs in distant places and with insufficient salaries, one has to think of having a home as soon as the opportunity arises.

Here are some guidelines to help people know what factors to keep in mind before applying for this loan.

Preferences and affordability: First be sure what you want, an apartment or an independent house/bungalow and its location. Then make sure of its affordability whether it fits into your budget or not. Do not opt for a house for which the loan may be difficult to repay. For a big budget house it is better to have two adult relatives, parents or spouse become co-applicants. This helps in availing a higher loan and is an assurance for repayments to the banks/loan companies. It also helps in paying off EMI (equated monthly installments) and getting tax benefits. This can be discussed with the bank/housing finance company.

You should approach several lenders. Do not rely on only one lender (bank / housing finance company). Meet 3-5 lending sources for home loans, collect data from them and compare them. Study the pros and cons of each lender before you finalize on the lender.

Learn about home loan features: Sit with the officials who will grant the loan and spend sufficient quality time with them asking them pointed questions about the terms and conditions of the loan such as how much percentage of the property cost will they give as loan, what is the repayment amount and at what terms. The interest on the loan may increase suddenly after a year or so, therefore be alert about it and clarity with them the time limit for the complete payment of the loan.

Home loan insurance: Get information on and take a home loan insurance because in case of any eventuality of disability or death, causing loss of income, the insurance company comes into play; the family is protected from paying the EMI and the house is not taken away by the lender.

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