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Applying for a home loan can seem like a quite a task. However, with certain handy tips kept in mind, this process can become quite easy. Go through the following blog to understand how to check your home loan eligibility, the documents required to apply for a home loan, as well as the ways to find a good lender. Read on!
How to check home loan eligibility?
You can use a home loan eligibility calculator to learn about your home loan eligibility. A home loan eligibility calculator like the one offered by IDFC FIRST Bank asks you to input details such as your net monthly salary post tax, the rate of interest of your home loan, monthly obligations, and loan tenure along with the type of your employment to display a home loan amount that you can qualify for with IDFC FIRST Bank.
Another significant financial calculator which you can use is the IDFC FIRST Bank home loan EMI calculator. All you need to do is enter the loan amount, repayment tenure, and interest rate for this calculator to display the loan’s EMI value.
Which are the documents required for a home loan?
The documents required for a home loan can be divided into three broad categories. These are – KYC (Know Your Client) documents, the documents required by the loan guarantor, and the documents related to your property.
KYC Documents
A bank’s KYC-verification procedure consists of verifying a customer’s identity proof, residential proof, and age proof. Here are the documents that a bank requires to verify a customer’s identity:
- Aadhaar card
- PAN card
- Passport
- Driving license
- Voter ID card
Furthermore, the bank accepts the following documents as residential proof:
- Electricity bill
- Ration card
- Employment letter
- Bank statement with your address mentioned.
- Telephone bill
Lastly, the following documents are checked by the bank to verify your age:
- Birth certificate
- Driving license
- Aadhaar card
- 10th standard marksheet
- PAN card
- Passport
How to find the best bank for a home loan?
Follow these steps to finalize the best bank to finance your future home.
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Prepare a list of lenders and home loan interest rates
Start by researching on the home loan features that you find useful and prepare a list of lenders offering competitive interest rates.
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Use a home loan EMI calculator
Use an online home loan EMI calculator to find out about the loan’s monthly instalments to understand the loan’s affordability. You can make changes to the loan amount and tenure to check various EMI results and see which loan plan is most suitable.
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Focus on the repayment tenure that the lender is offering
It is essential for you to pick a tenure that you find suitable for repaying the home loan. While some borrowers prefer to opt for a short tenure in order to save on interest payments, others prefer to opt for a longer one to make the monthly installments more affordable. Choose a tenure that is in accordance with your budget.
We hope we could help you in understanding the procedure to apply for home loan and check for eligibility online.
