Do you want to have your own house in Pune and want to avail a Home Loan in Pune for the same? Congratulations on your decision to make the cyber city your home!
Yes, Pune is a perfect mix of old and new values and it is one of the major cities that people love to live.
But, since you are a first-time homebuyer, you should consider some points because they will assist you to get to the core of Home Loans and how they work. Have a look!
Know the basics
Before you get in touch with a lender or a bank for a Home Loan in Pune, there are some vital documents which you need to compile. They require them along with your duly filled Home Loan application form.
- Age proof
- Identity proof
- Address proof
- Income details – Last 3 months salary slip and last 2 years’ IT returns
- Last 3 months’ bank statements
- Business continuity proof, if applicable in your case
These are the standard documents that lenders will ask you to submit. But, at times, they may request for some additional documents to authenticate your financial stability.
The Home Loan documents vary from creditor to creditor, and it’s always better to consult your lender and get the checklist to keep it handy when needed.
The fundamentals of the Home Loan interest rates
It’s a catch-22 situation for a majority of Home Loan hunters – selecting and deciding the right Home Loan interest rate. A housing loan interest is of two types – floating and fixed. What kind of interest to pick is always a call that a borrower needs to take as per his/her affordability!
Fixed rate – Under a fixed rate of interest for your Home Loan in Pune, an EMI gets calculated at a fixed rate and will remain intact for the entire housing loan duration. The Home Loan interest rate will not be hampered by fluctuating conditions in the market. If you have a limited budget which allows for a fixed EMI payouts each month, this type interest will work wonders for you.
Floating rate – As the name suggests, a floating interest rate keeps changing with the changes in the market which means that your EMI figure will also fluctuate. If your income allows paying fluctuating EMIs, you can opt for this type of interest rate.
Checking your CIBIL score
Being a first-time homebuyer in Pune, you should also keep in mind that a lender assesses your Home Loan eligibility on the basis of your CIBIL or the credit score.
A probable creditor will determine your income, how you manage your funds before the Home Loan application or your repayment history.
These aspects will help them to decide if you have Home Loan eligibility or not. A credit score of 750 or more is enough to take you closer to a Home Loan approval.
If your score is not good, you can manage to improve it by following some steps such as:
- Always pay your bills on time
- Ensure never to max out the credit limit of your credit card
- Try not to close unutilized credit card accounts
- Repay all your existing outstanding on time
Other than these factors, you should know how much EMI you can afford. For that, you can use a Home Loan EMI calculator which is available free on a leading lender’s website.
It considers the loan figure, loan tenor, and the housing loan interest rate to provide you an estimate of how much to repay monthly. When you know what EMI you can afford, you gain confidence and borrow a loan amount that suits you.
The Bottom Line
When you take into account all discussed factors while applying for a Home Loan in Pune; there are fewer chances that a lender will reject your Home Loan application. All the best!