Buy Your Own Home

Being a homeowner is an ambition that most of us harbour, and when the time comes to realise the dream, nothing quite parallels the anticipation. With that is also a certain amount of anxiety and apprehension, considering it is the investment of a lifetime and can be quite an overwhelming experience. Read on to know what you should keep in mind before applying for a home loan.

To give your search more meaning, keep in mind some basic information that you need to have on your mental checklist – for instance, what is the maximum EMI you can afford? What is the duration for which you foresee yourself continuing with the loan? What are the tax benefits associated with the loan? Understand for yourself what parameters are non-negotiable and focus on those.

Before you apply for a home loan, it is a good idea to do some research and understand the loan products available in the market and how they will work for you. You would then be able to narrow down on the one that suits your requirement the best. Banks, housing finance institutions and other NBFCs are all willing to extend credit to the right customer. Also, keep in mind that there are no pre-payment charges on a home loan, but lenders charge a processing fee, which is usually non-refundable in case your loan is not sanctioned. There might be certain benefits associated with taking a loan from your existing bank, such as better rates of interest, reward points, faster processing, direct debit facility for EMIs, etc. Banks such as Axis Bank make the process simpler by allowing you to check your eligibility online, with home loan calculators to help you estimate what your EMI, or Equated Monthly Instalment would be.

It was always my dream to have a home of my own. My parents also built their own home, with their savings over the years. When I moved out to study and work, I had to rent new apartments every time my lease got over. But now, with my own home, I am sure that I can stay at one place and live the way I want.

Ankush Choudhury, 36, Noida, Bank Manager

One such offering is a pre-approved loan, wherein you can make a loan application even before selecting a property. The financer takes into account credit history, income details and other relevant information before determining the sanctioned amount. Once you know how much money you have in hand, it becomes easier to shortlist homes basis your loan eligibility. Do also check for any schemes or offers, such as a waiver of processing fee etc.

From all the options available, what is critical is the home loan interest rate (whether fixed or floating), tenure and other charges and fees. Factor in the cost of registration and stamp duty before you finalise the property, and ensure all paperwork including legal titles is clear.

So go ahead and make your home, your own, sooner!