How to Get a Home Loan for First-Time Homebuyers
The Indian government has introduced several housing schemes recently to encourage new real estate investors. Besides, increased private sector investments, awareness of online and offline investment methods, and how to get a home loan have enabled several new small investors and home buyers to take part in investment in the real estate, resulting in 10% to 30% growth of the residential market in India. First-time buyer home loans and subsidies save money for investors who find it safe to park their funds for long-term appreciation and lucrative regular income, which keeps the real estate sector performing well amidst volatility, inflation, and downtrend equity market.
Home loans are available under many categories hence it is essential to know what and how of taking a home loan to avail the maximum benefit for the first-home buyers.
Before Going into How to Apply for a Home Loan, Let Us Explain What a Home Loan Is
A home loan is a particular amount of funding done by banks or realty finance companies based on certain eligibilities so that the applicant can overcome the issue of the insufficient fund while buying a house and pay off the capital and fixed interest amount conveniently in a scheduled manner.
How to Take a Home Loan and Types of Home Loans Available in India
Applying for home loan requires you to provide some of your personal details to the bank and the documents that serve as proof of the information furnished in the home loan form. The bank cross checks employment details, bank account details and your credit score before approving the home loan.
Home Loans – How to Get a Home Loan for Buying a Fully Built House
A basic home loan is designed to lend the amount of money required by the first-time home buyer to overcome any shortage of funds so that the applicant can successfully purchase an apartment or individual house immediately and pay the interest to the lender periodically and repay the capital amount as per the loan policy and terms & conditions. Here is how you can apply for a home loan to load your inadequate financial capital.
- Fill out the forms with the details asked by the lender.
- Submit support documents like address proof, bank statements, employment proof, Form 16, etc.
- Wait for the bank to complete verification processes on the details given by you and your credit scores before approving your loan application.
- Bank will send an approval letter for the loan amount you are eligible for.
- On payment of the secure fee, the bank further verifies the property to the loan applied, etc., before disbursing the loan amount in your account.
Plot Loan – How to Apply Housing Loan for Buying a Plot
Land loan available is only applicable for residential plots in Chennai or anywhere else in India. A plot loan is a land loan that replenishes the inadequate fund allocation while buying land. Many banks provide a lavish down payment loan amount that you can buy a plot with little funds from your end, and the rest of the amount is taken care of by a home loan. If you are looking to buy a property for the first time, our land for sale in Madhavaram can save extra money with added benefits of a home loan for first-time home buyers.
Same as applying for a home loan, except you have to provide land documents such as mother deed, EC, Revenue and tax bills, etc.
Home Construction Loan- How to Get Loan for House Construction?
Once you buy land, you can keep it as an investment or build a home to reside in or rent out but building a house requires a lot of cash flow at several stages compared to single-time spending on land purchase. Knowing how to get loan for house construction help first-time home buyers to immediately start building their dream home, only that the loan amount is disbursed in installments as the construction progresses.
Apart from basic details and supporting documents, the applicant must provide the construction details like the time plan for each construction process in the project, construction plan, and budget. Once the bank approves, the loan is disbursed part by part during multiple construction stages.
What is Pradhan Mantri Awas Yojana (PMAY)?/ How Can I Get Home Loan With Tax Benefits?
If you are a first-time home buyer and wonder how I can get home loan with interest subsidies, you are in the right place. With PM Awas Yojana you can save a lump sum on the home loan while buying your first home. The Credit Linked Subsidy Scheme (CLSS) of PMAY allows first-time buyers to get subsidies on home loans, and other tax benefits are on the cards if you apply for home loans from banks registered under the PMAY scheme.
To get a loan to buy a house under the CLSS of PMAY, one must belong to any of the below-income groups.
- Economically Weaker Section (EWS) or Low Income Group (LIG).
- Revised Economically Weaker Section or Low-Income Group.
- Middle Income Group 1 (MIG - 1).
- Middle Income Group 2 (MIG -2).
Home Renovation Loan – How to Get a Loan to Re Build/ For House Extension
Here is how the first-time home buyers get loan to renovate any existing property. As the name suggests, these home loans are taken for repair, extension, improvement, and renovation of the house the owner lives in. The renovation home loan is ideal if you have plans to rent out an existing house that needs touch-up to make it market-worthy so that you can pay off the loan from the rent you draw from the property after renovation.
Home Loan Interest Saver for First-Time Home Buyers
The home loan interest saver account helps reduce interest rates on the premium amount. Here is how to take home loan in this plan - the bank links your home loan account with the current account, and the interest is calculated based on the incoming fund in your current account. The more the fund flows, the more reduction in the interest rates.
Loan against Property
One of the ways to buy a plot or house with insufficient funds is to get a home loan against another property as a security or collateral. The borrower uses the loan for debt consolidation of other EMIs, in this case, a home loan of the first-time home buyer.
Bridge Loan – How to Apply Short Term Housing Loan?
A bridge loan for first-time home buyers who sold an existing property recently to buy a new home but lacks enough funds. The bridge loan is helpful when you need to fill a little lack in the capital amount that you would take a loan instead of asking your family or friends and can pay off in a few months.
Wrapping It – How to Get a Loan to Build a House?
The real estate sector in India has witnessed significant growth and has taken several forms to benefit investors with sustainable real estate development. The knowledge of how to apply for a home loan, growing number of Indian and NRI first-time home buyers, leasing of office co-working spaces, real estate equity and mutual fund investments, rental real estate, and property development year on a year contributed to the expansion of the sector and is expected to grow further from 10% to 15% in the coming years further making it a haven to buy residential plots and homes and save through exemptions especially when you know how to get a home loan! Whether you are a first-time home buyer or not, there are several realty loans you can avail of in India to get tax benefits!