What is a home loan?
A home loan is a secured loan that is procured to buy a property by offering it as collateral.
What are the types of home loans?
The various types of home loans are
Home purchase loan:
A home purchase loan is taken to buy a home
Home construction loan:
It is taken to build a new house
Home improvement loan:
It is taken to repair a home
Home extension loan:
This loan is taken to make any structural changes to the existing house to add more living space.
Joint home loan:
It is a home loan taken along with a co-applicant. The co-applicant can be a family member, spouse, parent, sibling, or offspring. Both of them have equal financial responsibility in repaying the loan.
Top-up home loan:
It is a funding option that is offered in excess of the existing loan amount for credit such as personal loans, home loans etc.
Land Purchase Loan:
It is taken to purchase a plot of land.
How To Apply For a Home Loan?
The step by step loan application process is as follows:
- Fill out the loan application form completely with accurate details.
- Attach the required documents
- Pay the processing fee
- Verification of the documents by the bank
- Approval of the loan
- Processing of the offer letter
- Processing of the property papers and conducting a legal check
- Conducting the technical check and doing a site estimation
- Signing the agreement
- Loan disbursal process