Bank Home Loans For Your Dream Home

By Author: Indrani Das
Total Articles: 46
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Everybody nourishes the wish to build or purchase own house. In order to give shape to that dream different banks offer various kinds of home loans. It is a secured loan. This is offered against the security of the property, personal or commercial, funded by it. This means if the borrower fails to repay the amount, the lender can retrieve the money by selling out the property. It is generally provided on the basis of the market value estimation provided by the respective bank or the registration value of the property itself.

However, there are different eligibility criteria for accruing a secured Home loan. The factors should be kept in mind before you are going to borrowing. The factors are, the interest rates has to best suited to your borrowing criteria, whether the loan has fixed interest rate or floating, other costs associated with the it the particular documents required and penalties. There are different types of home loan available in the market to cater to the particular need of the borrower. Home Purchase Loan is granted for the purpose of purchasing a new house. ...
... On the other hand, Home Improvement Loan is offered for the renovation of an already purchased home. Another kind which exists in the market is Home Extension Loan. This is for the borrowers who are planning to extend their existing home.

Besides these, Home Conversion Loan is also available in the market. It is offered when the borrower has to finance his current home, but recently planning for relocation. It enables the borrower to transfer the existing loan to the new home. Bridge Loan is generally for financing the new home of the borrower in case he or she is planning to sell the existing home. This is normally granted during the interim period between selling the old home and buying the new one. It comes into use for purchasing new homes. Home Construction Loan is the best option if the borrower is planning to construct new house. Land Purchase Loan is also provided to the borrower while purchasing the land for construction.

However, while borrowing, every mortgage holder looks for Cheapest home loan available in the market. It can be a low fee loan. A basic one generally offers the borrower the lowest interest rates with lower application rate and no ongoing fees. In all cases before lending the bank requires the borrower to produce some original documents which are needed for processing applications. The documents are age and address proof, income proof of the applicant passport size photograph and last six months bank account statement.

In case of salaried borrower, the employment certificate from the employer is required. TDS certificate and copies of last six months pay slips along with latest form sixteen issued by employer bank statements need to be produced. If the borrower is an independent employer, copies of audited financial statements of last two years, profit and loss account of last two years and income tax assessment order are required to be produced.