Wednesday, March 25, 2009

Home Loan: It’s Need in Building a New Home

It is the dream of every individual to have his own home. If you are planning to build a new home, it is best to avail a good home loan. With the help of home loan, you not only get a home of your own but also save money in the long run.

What is a home loan?

Home loan is a plan in which a lender offers money to the borrower to build his home. On the other hand, the borrower has to pay back the loan amount with interest according to the terms of the agreement within a fixed period of time.

Nowadays, people often avail home loan while building a new home. It not only helps the borrowers to reduce taxes but also saves money. To help borrowers with different financial budget, different home loan companies have come up with generous lending rates and schemes. For those who cannot afford to pay the initial down payment, there are many organizations offering “zero down payment option”.

What are the documents needed in a home loan?

There are various types of home loans available in the market. Different financial organizations offer different loan plans to suit the need of their customers. But to avail a home loan, there are certain documents that you will need. Given below is the list of some of the documents that are needed in home loan:

• Personal id proof such as passport, driver’s license etc
• Photograph (passport size)
• Proof of date of birth
• Residence proof such as rent receipt or loan statement
• Current liability proof which include credit card statements, loan statements etc
• Income proof such as salary slips, financial statements etc

Before you avail a home loan, check out the interest rates offered by various banks and finance organizations to know about the current scenario of the market. You can also take the help of online information to be up-to-date about the home loan quotes. Avail a good home loan option and fulfill your wish of building a new home.

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