Contact bank before applying for property

Home loan provides very convenient option to have a home of your own. Burt there are a lot of things that needs to be taken care of. If a customer neglects even one aspect or condition he might find himself by a lot of complications.

One our of those things that a customer need to take care of is that he must collect all the possible details about the property and before applying for the property he must contact the bank for the loan as afterwards a customer might find it difficult to get a home loan. In that case the borrower is forced to settle for high interest rates.

There are certain criteria’s that a bank uses to decide the borrowing capacity of a customer. A customer must also be aware of his borrowing capacity.

The executive director and chief financial officer of IDBI Bank R K Bansal said "The criteria for deciding the home loan are primarily the cash flow and expenses of the borrower.”

Generally the banks assumes that a customer needs around 45-50 percent of his monthly income to meet his personal expenses and takes consider 40 percent of the monthly income that a customer can pay as EMI’s for the loans that he has taken.