1. When can I make home loan application?
Honestly speaking, there is no such right time for making your home loan application. The time you have figured out your budget and zeroed down on the property that you want to buy, you should apply for home finance.
2. Will the lending bank provide the entire cost of the property that a personal wish to buy?
No! But yes generally what bank do is that they lend only 80% of the cost of your property and the rest 20% is to be borne by the loan borrower. most banks have broken up this ration into 10-80-10 so that at the time of availing the loan, customers are only required to pay 10% of the total cost and the rest is paid by the bank.
3. Can loan repayment be made ahead of schedule?
Yes. All banks allow pre-payment of home loans. Some banks charge a pre-payment fee for that while others do not.
4. Is taking a home loan a smart investment move?
Any kind of property is considered an asset and hence buying a property is considered as a wise decision. Also, real estate prices have been appreciating on an annual basis. If you are confident that your income is sufficient to cover you for a long term liability like home loan then you can surely avail one to buy a property.
5. Can one go to jointly account for a home loan with my spouse? Will both our incomes be considered for loan quantum?
Yes. You can apply jointly in your and your spouse’s name. Both of your incomes will be considered for determination of loan quantum.
6. What documents do I need to submit to avail home loan in India?
Generally, all banks ask for proof of address, proof of identity, bank account statements and salary details from home loan borrowers. It differs a bit from one bank to another.
7. Can I switch from fixed to floating rate of interest and vice versa during the tenure of my home loan?
Yes. Most banks allow switching between fixed and floating rates. However, customers may be charged a particular fee for the same.
8. If I deposit my property documents as security with the bank, when will I get those back?
Any property document that you submit as security collateral is returned to you only once the entire home loan amount is repaid and the home loan on your name is closed.
9. Can I avail home finance for renovation or construction of house?
Yes. Home loans are offered under various sub-heads. Renovation of property or construction of house is also offered by all major banks in the country and you can do it with the help of home loan easily.
10. Can I apply jointly for a home loan with my spouse? Will both our incomes be considered for loan quantum?
Yes! On can apply jointly in your and your spouse’s name. Both of your incomes will be considered for determination of loan quantum.