5 Things to Keep in Mind While Applying for a First Time Home Loan
A home loan is a great form of financial assistance for first time borrowers. But before you apply, know the prerequisites:
Eligibility Criteria
Ensure you check the housing finance eligibility criteria for a Home Loan. Because there are specific age, income and credit score requirements that a First Time borrower.
#1
Documentation
To prove your eligibility for a Home Loan, you need to submit a list of documents. This includes your ID, address and income proof.
#2
Type of Interest Rate
First Time Home Loan borrowers might not be aware of the types of interest rates. There are two types basically -
Fixed - Remains the same
Floating - Change with market fluctuations
#3
Loan Tenure
A Home Loan has a maximum tenure of 30 years. But, First Time Home Loan borrowers must know the longer the tenure, the higher will be the interest payout and vice versa.
#4
Home Loan Agreement
Read the Home Loan agreement carefully while borrowing a loan, as it remains effective throughout the repayment period.