1. Home Purchase Loans: This loan is for
buying a new home.
2. Home Conversion Loans: This is for those people who plan to shift from
the old house, which incidentally was bought on a home loan, to a new one.
Through a home conversion loan, the existing loan is transferred to the
new home including the extra amount that needs to be paid for the new
home.
3. Land Purchase Loans: Land purchase loans are loans that are taken for
purchasing land. This land may later be utilized to build a factory,
hospital etc. The land may as well be used for investment purposes.
4. Home Improvement Loans: Home improvement loans are loans that are
taken for repairs at houses or for redoing a damaged portion of the house.
There are many other home-related loans
that get covered under home loans.
The process for applying for a home loan
is pretty simple. Firstly one needs to write an application to the bank
or the lender about the amount he wants and what is he surrendering at
security or a collateral. The lender then goes through the papers
provided and verifies whether or not the prospective borrower can repay
the loan. If the lender is satisfied the loan is issued otherwise
rejected.
The repayment period options too are custom made to suit the needs of
various segments of borrowers. The longer the repayment period, the
higher will be the rate of interest. Corporates usually go for a high
loan and a shorter repayment period.
But before you drive to the nearest bank or a financial institution to
take a personal loan there are quite a few points that need to be looked
after. ? Why do you need the loan and how urgent is the money for you now?
- Do you have a proper and a set plan to repay the loan?
- Survey the best deals that are available in the market and then make
your choice regarding the best loan and what suits you.
- Know the bank's requirement before you apply for a loan. For example,
some banks ask for a salary certificate. So be ready with the documents,
just in case.
- While signing the agreement papers make sure that you've read each word
in detail and then take the loan.
- Finally, once you've taken the loan be sure that you invest it in the
right place and then be in a position to repay the loan within the
specified period of time.
