Take out a home loan? Points to remember

Everything you need to know before applying for a home loan:

Taking out a home loan is that one big step that brings you closer to your dream home. Deciding to take out a loan can be complicated at times when you need to prepare in advance and be well aware of the terms. You must understand the loan structure before signing up for the process.

Superbanks gives you the option to choose from over 40 banks and NBFCs because you deserve the best. Superbanks offers services that make it much easier to get your loan without wasting much time.

You can simply walk to the door while applying for your home loan with minimal paperwork and get your loan approved within 48 hours without any hassle.

Moreover, you can also make use of topping up home loan rates.

Here are the main points to remember:

1. Can home loans be transferred to another person?

Yes, but few conditions are applied, especially within the family members who are financially able to pay. For example, client A has taken out a loan and her father is a co-applicant. Now she is getting married and moving abroad and her father is not able to repay the loan all by herself, in this case she can transfer the loan to her brother who is able to repay the loan and their father as the co-applicant.

2. Can home loans be taken out jointly?

Yes, it is possible to take out a home loan together, but only within the family. For example, let’s say there is a married couple who want to approve a loan. Husband earns up to Rs. 50,000/- and woman earns up to 30,000/-

So if they want to apply for a loan now, they can do it collectively because it will allow them to apply for a higher loan amount and it will be easily penalized.

3. Is a deposit required?

No, no deposit is required. Home loans are partially paid. Let’s say, a person named Aman takes a loan of Rs. 10 Lakh and in the first year he pays 20% to the bank, later in the next year he pays 40%, in the same way he can pay the loan amount in installments.

4. Is property insurance necessary when taking out a home loan?

It cannot be imposed on an individual, but few banks have made it mandatory to purchase property insurance when taking out the loan.

Property insurance ensures that your property is safe and can be recovered if damage is caused. Banks must in fact be assured of the money you have withdrawn from the bank and in this case you must take good care of your property.

To date, few banks or NBFCs have not mandated property insurance, but it is beneficial for you not to worry.

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5. How does taking out a home loan affect credit score?

Credit score / cibil score is the most important factor when applying for a loan. When you apply for a home loan, your cibil score improves as you add 100 points to your credit score and it’s always good to have a higher credit score. You need to be sure to pay your EMIs on time to maintain a healthy credit score as it benefits in taking on another loan if and when required.

6. What are the criteria to get a home loan?

Here are the few criteria by which you can easily take out home loans.

Age Criteria:-

Minimum 21 years for applicant

Minimum age of 18 for co-applicant

Max 60 years (net retirement age)

Income Criteria:-

Minimum INR 25,000 for wage earners

In case of business, minimum ITR above 3 Lakh

For rental purposes, minimum INR 20,000.

7. Is it hard to get?

To be eligible:-

No, it is not difficult to get an approval. You just have to qualify for that.

You must have a good CIBIL score

You must be employed.

The minimum wage should be Rs. 25,000/-