- Smile homes
- Contact us
- Home Loan Guide
A Comprehensive Home Loan Guide For First Time Home Buyers In India.
Buying your own house through a home loan comes with tax benefits. This helps you to manage cash flow along with reduction of taxes. You can decide the type of home loan you want. However, it pays to be in the know of your home loan eligibility and the criteria to be satisfied prior to applying for one. You can use the home loan funds for purposes such as new house construction, purchase of a new/used house, or renovation. Irrespective of your occupation/profession, it is important that you check your home loan eligibility through the online calculator available in this home loan guide prior to approaching a bank or other financial institution.
Banks and financial institutions that offer home loans will look at several criteria before sanctioning the loan. Some of the common and important ones are listed below for your ready reference:
Apart from the above, some of the other criteria that the lenders often take into consideration are:
This is one of the crucial aspects that lenders take into consideration. If you belong to the salaried class, you should be employed for a period of two years in the present organization. If you are self-employed, then you should have been earning an income for a minimum of five years. If you do not satisfy this criterion, your loan application will not be considered at all.
If you are employed in a company that has a high reputation and market standing, your credibility will be much better.
Apart from your company’s performance, your credit score is also important. The higher your credit score, the higher the chances of you obtaining a loan with better terms. Defaults in payment history, not-so-good payment track record, and outstanding loans can all negatively impact your credit score. The bank may even cancel the loan request or charge a higher rate of interest.
What is Credit Score?
If you are wondering as to “what is a credit score”, it is a statistical number. It evaluates an individual’s creditworthiness. It is based on a person’s credit history. Lenders often make use of credit scores for evaluating the probability of an individual repaying his/her debts. The credit score of an individual can range from 300 to 850. The higher you score, the more trustworthy you are.
In India, lenders check your CIBIL score prior to approving a loan. TransUnion CIBIL Limited, the credit information provider in India, maintains credit records of 32 million businesses and 600 million individuals. It is one of the four credit bureaus that operates in India and belongs to the American multinational group TansUnion.
When it comes to assessing your financial situation, the lenders take into consideration your present status and your track record with respect to financial stability.
When you are applying for a home loan, the first question that comes to your mind is “how much home loan can I get on my salary?” The home loan eligibility calculator that is included in this guide will help you to get a fair idea as regards how much you can get. The calculator determines the amount by considering the following factors:
When applying for a home loan, you are required to submit a host of documents as listed below:
Salaried individuals (any one of the documents listed below)
In addition, salaried individuals are required to furnish investment proofs such as fixed deposits, share certificates, etc., and passport-size photographs.
In addition to the above, self-employed individuals/businessmen are also required to submit:
This is not an exhaustive list of documents to be submitted when applying for a home loan. The documents required for home loan approval often varies from one lender to another.
Different types of home loans in india
Thank you for visiting our website. We would like to take this opportunity to keep you up-to-date with the changes currently being deployed in accordance with the rules and regulations stipulated by RERA – Real Estate Regulatory Authority.
This process may take time, and it’s duly advised not to take any information currently mentioned on the website like images, material, stock photography, projections, details, descriptions, etc. to make a final purchase decision. All information should be deemed to be or considered only as advertisements, solicitations, marketing, offer for sale, an invitation to offer, an invitation to acquire, including within the purview of RERA.
You are therefore requested to personally verify all the details and aspects of any booking/acquisition of units/premises, directly with our sales department. To reiterate, please do not rely on the information contained on this website to make a final purchase decision until all the revisions and updated are completed.
Also, please note that we’ll not be accepting any bookings or allotments based on the material, images and descriptions mentioned on the website. We request you to contact our sales department for expert advice and information on the same.
Thank you for your patience.