| You have ambitious plans for owning a home or you | | | | lenders will take only the mortgage on housing |
| may be just thinking buying a piece of land to construct | | | | property and no other collateral is required from the |
| a home on it. This of course requires huge funds. In | | | | borrower. In case the borrower fails to offer security in |
| turn this means that you would be requiring housing | | | | time then alternate collateral will be required till time |
| loans. But before you apply for the loan, ensure that | | | | mortgage is given in favor of bank. |
| you have gone through all aspects of it so that you | | | | Interest rates on are either floating or adjustable. The |
| sign a suitable deal. | | | | advantage of fixed rate is that the borrower |
| First know that these loans are given for purchasing | | | | beforehand knows the monthly payments to be made |
| house of flat, land with house or buying land for | | | | for throughout the loan period and so one can plan |
| constructing house and so on. All those people who | | | | budget. The borrower is saved from any rise in |
| have a regular source of income are eligible for these | | | | market rate of interest. |
| loans. | | | | Another aspect that you must keep in mind is that you |
| The loan amount that one is capable of borrowing can | | | | would be insuring house or property and it is |
| go up to Rs 3 crore but depends on lots of factors. | | | | mandatory. The cost towards the house insurance has |
| Usually lenders are willing to approve 85 percent of the | | | | to be borne by the borrower. |
| project cost. In this cost stamp duty and registration | | | | Before applying for housing loans, better first take rate |
| charges are also included. | | | | quotes of the lenders. You should compare those, |
| Note that you are required to make down payment | | | | keeping rates and terms-conditions in mind. See which |
| which will be higher if you are buying an old house then | | | | lender will approve a loan of your requirement without |
| the. However in case you are constructing a new | | | | many additional costs. Keeping these basics in mind |
| home, the lender will take a lower down payment. | | | | you can locate a suitable deal. |
| As far as the securities are concerned, housing loans | | | | |