Before you buy a property, you need to consider some factors such as the returns on the land, property documents, and whether they meet your finances or not. Real estate in Chennai has been growing at a rapid speed. Quality and premium apartments in Chennai have seen a considerable demand from realtors. The Northern part of Chennai is dominated by industries whereas both commercial and residential markets exist in central Chennai and are the most developed areas. West and South Chennai which was formerly dominated by domestic areas are starting to be a hub for several IT and financial companies and is turning quickly into a commercial zone. There has been a rise in Chennai’s real estate property markets which are Sholinganallur, Chrompet, Kelambakkam, and Perumbakkam. Applying for a Home Loan in Chennai is an easy and a quick process.
Staying in a rented apartment may save you money, but it comes with a few cons. Staying in a rented apartment means you will have to find a new house every year and shift to a new locality. Also, there is no guarantee that you will get a house which has the same facilities and amenities. Hence, by applying for a Home Loan, you will not only get all amenities you want but also get to live in your own home and will not have to worry about shifting every year.
However, if you do not have the finances, then you will not be able to purchase a home. Also, it is not advisable to spend all your savings on buying a house as you will incur other household expenses too. In this case, it is recommended that you take a Home Loan from a lender or a Non-Banking Financial Company (NBFC). Simply by filling an application form on the website of your lender and details such as your income, loan tenor, and interest rate; the lender will then review your application form and also cross check for any outstanding loan payments. Based on these, your lender will sanction a loan. Home Loans are becoming popular because of the affordability of homes and the rising incomes of individuals.
There are certain aspects that you have to keep in mind before applying for a Home Loan:
- Down Payment: Any lender who gives you a Home Loan is not entitled to give you 100% of the loan amount. The maximum loan amount you will get is 80%. This is because your financial institution will expect you to pay at least 15 to 20% of the amount as down payment. Hence, if you are applying for a loan of INR 20 lakhs, ensure that you have INR 4 lakhs as you will have to pay down payment for the same.
- Back-End Ratio: Also known as debt to income ratio is the amount of money which will be deducted from your monthly income that goes towards paying your outstanding debts. These are mainly used to pay off monthly debts for example payments for other loans, child support payments, and credit card payments.
- Front-End Ratio: Also known as the EMI (Equated Monthly Instalment) to income ratio. This ratio is calculated when you divide the projected EMI with your income for a month. Income will be taken on its gross value. These payments include insurance amounts, taxes, interest and principal.
- Maintenance Charges: After purchasing your home, you will also have to spend on household appliances, maintenance fees and cater to the needs of your family. Hence, ensure that you keep that in mind and manage your expenses.
There are also certain eligibility criteria for applying for Home Loans.
- Person applying for a Home Loan must be an Indian resident
- Minimum age limit is 25 years, and maximum age limit is 58 years
- Your salary must be consistent with a minimum of 3 years of work experience
- Minimum Home Loan is 3 lakhs, and maximum is 10 crores
Your financial institution will have Home Loan EMI calculator which will help you in knowing how much amount you will be liable to pay at the end of each month. According to this, you will have to decide and manage your future expenses and savings.
Therefore, if you are still stuck in a rented apartment but want to buy a house of your own, you must consider applying for a Home Loan in Chennai and your lender will guide you through the process.