What are the major points to consider while taking home loan?

If we ask you, what is that one materialistic dream you wish to fulfil right now? For the majority, the answer is- “A House”.

Buying a house is an important life goal for many of us. It's a significant investment both financially and emotionally. However, it often requires a considerable amount of money.

If you're short on cash or prefer not to dip into your investments, a home loan can be a great help. It's a type of loan you can get from a bank or housing finance company to help you buy your own home. With manageable monthly payments and the flexibility to choose your repayment period, a home loan makes it easier to turn your dream of homeownership into reality.

Major points you should know before you apply for a home loan:

Assess your home loan eligibility criteria
The different types of home loans

Various types of home loans available in India include: Regular Home Loan

Loan for Home Construction, Land or Plot Loan, Loan for Home Improvement and Extension, Top-Up Home Loan, Pre-Approved Home Loan, PMAY Loan (Pradhan Mantri Awas Yojana Loan), Balance Transfer Home Loan, NRI Home Loans

Get your home loan pre-approved
Consider these factors:

Loan amount
Cost of loan
EMI payable
Loan tenure

Documentation that needs to be submitted

For Salaried Individuals:

Identity Proof: Aadhaar Card, Passport, Voter ID, or any government-issued ID

Address Proof: Utility bills, Passport, Aadhaar Card, Voter ID

Financial Documents: Form 16, Last 3 months' Salary Slips, Last 6 months Bank Statements

Property Documents: Sale deed, Title deed, Approved building plan, Occupancy documents

Additional: Recent passport-size photographs, Completed loan application form

For Self-Employed Individuals:

Identity Proof: Aadhaar Card, Passport, Voter ID, or any government-issued ID

Address Proof: Utility bills, Passport, Aadhaar Card, Voter ID

Financial Statements: Audited financial statements of the past 2 years including Balance Sheets, Profit & Loss Statements, and ITR documents

Business Documents: GST registration, Trade license, Partnership deed, Articles of Association, SEBI registration certificate, ROC registration certificate