Things First Time Home Loan Borrowers Must Know

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Things First Time Home Loan Borrowers Must Know

• http//www.jmdhomeloans.com/

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• Living in Mumbai has become a little expensive.
  With the property rates going higher each day, it
  has turned the tables and people are now living
  on rent and started saving in order to buy a home
  through home loans. And there are many home loan
  providers in Mumbai who offer good interest rates
  and a longer tenure for loan repayment. So now
  when you are planning to buy a house in Mumbai
  you also need to take care of the loan procedure.
  To make this process hassle-free, we have
  collaborated a few things which, first time home
  loan borrowers should know.

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• 1) Principal amount It is the amount you would
  need to purchase a home. For an example, you want
  to buy a house of 20 lakhs, for which you have
  already saved 4 lakhs. The remaining 16 lakhs
  will be the loan amount making the total as the
  principal amount.

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• 2) Down payment This is the amount that a bank
  or loan provider requires from a loan borrower.
  We can take the example mentioned earlier. The 4
  lakhs that you save would be the down payment in
  this case. It can either be in a range of 15 to
  30 of the amount of the property you are
  planning to buy.

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• 3) Loan Eligibility It is the amount which is
  eligible for the loan applicant. It depends on
  the monthly and yearly income of the applicant.
• 4) Co-applicant A co-applicant can be your
  joint applicant. It can be anyone from your
  family like, father, mother, brother, spouse or
  sister. And if you have a co-applicant who earns
  a regular income, in terms of salary or business
  increases loan eligibility.

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• 5) Types of interest rates Every mortgage loan
  provider has two types of interest rates.
  Floating and fixed interest rates. Floating rates
  keep changing and fixed rates stay constant.

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