What is a home loan? Home loan types, features, and eligibility? Today I will discuss all these issues, what do you need to take your home loan? How can you take it? Let’s discuss all the open fairs, so let’s get started.
What is a home loan? Types, Features, and Eligibility of Home Loans
A home loan is a secured loan where a bank or financial institution can lend you money to buy your dream home. It is usually offered for a longer-term than other types of loans. This is because the amount of debt is usually high and long-term planning is required to repay it.
Types of home loans:
- Home Buying Loans: Take this loan when buying a new home.
- Land Purchase Loan: You can take this loan to buy any property for investment or construction purposes.
- Home loan: If you are planning to build a house on the land already owned, opt for a home loan.
- Home Development Loan: Choose this when you take out a loan for a home repair or renovation project.
- Home Loan Transfer: Transfer an existing home loan to a new lender’s account to take advantage of the low-interest rates offered by various banks.
Features of Home Loan:
- It is a secured loan. That is, the lender treats your home/property as security. If you fail to repay the loan, the lender will have the right to raise money by selling your home/property.
- The repayment period for this loan is in the range of 3 to 25 years. Home loan equivalent monthly installment (EMI) is calculated by adding the principal amount and interest. A home loan includes costs like registration charges, processing fees, estimates, commitment charges, and miscellaneous charges (documentation/advice).
What are the qualifications required to get a home loan?
Eligibility may vary from one lending institution to another, but there are some general requirements:
- Any salaried, self-employed, or business person with Bangladeshi nationality can apply for a home loan.
- You must be 21 years of age or older.
- You should have a regular source of income to repay your loan on time.
- Your professional sustainability and savings history will help you get loan approval faster.
- Before applying for a home loan, make sure you have no bad credit history at least three months in advance.
- If you are a salaried professional, your monthly gross income will determine the amount of debt.
- For self-employed persons, the profit earned mainly determines the value of the loan.
After that, I will write some articles about home loan calculator Germany, and home loan Germany.