If buying a home is one of life’s biggest dreams, then taking a home loan will prove to be even bigger than that. Yes, even bigger than choosing from the top real estate companies in Kolkata. A home loan has always been the bridge to happiness for countless families and is definitely something that needs your attention before buying an apartment. Being a major financial decision, there is a huge expenditure involved in the process and the complications may seem scary to many.
But it doesn’t have to be.
Not when you have this list of essentials before making the final decision.
Here’s all you need to know.
An All-inclusive Checklist to Approaching Home Loans
Evaluate your budget and funds
Selecting a riverside residential project in Kolkata would be a dream come true. But make sure you have the financial capacity to back it up. You cannot apply for a home loan without knowing the financial obstacles that lie ahead of you. It is always wise to analyse your finances (not just for the down payment amount).
Rather, evaluate the possible expenses that you may incur and also ensure you have funds saved for financial emergencies. As the saying goes, don’t put your eggs in one basket – never invest all your savings for a home loan. Check out this list of common questions that have been asked before:
- What should be my budget for buying a home?
- What should be my down payment?
- What should be my estimated EMI?
- How much will I require?
- What is the tenure available?
luxury apartments in kolkata evolution.
If everything goes well, banks can approve a total of 80% of the property cost leaving the borrower to pay just 20% from their side. Even builders are now offering flexible payment plans for luxury apartments in Kolkata. But it doesn’t end here. There may be a series of additional charges that you may face during this process which can be one-time payments or even monthly. Plan your finances accordingly and here are a few charges you must definitely take into account:
- Processing fee
- Service fee
- Administrative expenses
- Application fee
- Legal fee
- Stamp duty
- Documentation fee
- Recovery charges, etc.
Give emphasis to your credit score
Perhaps the most essential of them all, a credit score is something that makes or breaks the deal. It is always advisable to check your credit score about 12 months before making the decision to purchase a home. To sum it up, this is important since it shows your consistency in paying EMIs and credit cards dues.
Did you know that maintaining a clean track record for payments actually helps you get the best interest rates? It actually plays the role of a bargaining chip since you can actually negotiate rates and the amount itself. It also becomes easier when deciding to invest in the top real estate companies in Kolkata.
So yes, good credit scores equal greater chances of getting your home loan approved.
Get your vital documents in order
Getting a home loan for investing in a residential project in Kolkata can be easy and quick – but only when you come fully prepared. Before applying for a home loan and approaching banks/other financial institutions, it is wise to keep a checklist of necessary documents at hand. Here is a complete list of paperwork and formal documents that need to be submitted and verified during this process.
- Salary slips of the last 3 months
- Bank statements of the last 6-12 months
- Proof of age, identity and address
- Application form signed with photograph
- Income Tax Returns or Form 16
There are separate brackets like salaried and self-employed applicants so ensure that you follow up with some research based on your occupation.
Browse through the agreement carefully
Just like the builder-buyer agreement for luxury apartments Kolkata, a home loan agreement outlines the terms and clauses involved in the transaction between the lender and customer. Keep in mind that these have legal implications and none should be overlooked – not even the smallest of details.
Of course, don’t rely on words. See exactly what you’re getting into and make sure that the terms are perfectly clear. Once you get the complete picture of what the loan application involves, the entire process becomes seamless and smooth.
Remember, don’t sign documents until you’re 100% sure.
Without a doubt, there is a lot of contentment and security with investing in a residential project in Kolkata, but this is only when the home loan process is done right. With so many factors to consider such as tenure, EMIs and interest rate, don’t let the other features fall out of focus.
Make the best choice for your family, the right way.