Home is a dream a lot of people wish to become a reality! And home loans provide that opportunity for everyone. With affordable housing and ease of home loans, buying a house has become much easier.
What are Home Loans?
Home loans are loans provided with the sole purpose of buying a house, where the bank or the financial institution charges a rate of interest around 6.80% to 8.50%, respectively.
The home loan tenure ranges lowest to maximum 30 years where a person can avail Rs 2 lakh to 5 crores, subject to the loan approval.
The home loan interest rates range in the following three varieties:
| Home Loan Type | Interest rate |
| Home Loan | 8.50% onwards |
| Home Extension Loan | 8.50% onwards |
| Affordable housing Loan | 8.50% onwards |
The subject to approval in the loan is based on the individual’s salary ratio, the price of the house, and certain other aspects which may tamper with the loan process. The repayment of the per month EMI can also be a problem for many individuals. To avoid that, the banks provide a free home loan EMI calculator, which provides the EMI calculation as per the loan amount, the repayment tenure, and the home loan rate of interest.
The eligibility criteria of home loan are as follows:
For salaried individuals –
The Age should be between 24 to 65 and should be earning a minimum of Rs 30,000 per month with a minimum of 2 years of experience.
While for the self-employed individuals –
The Age as salaried should be 24 to 65, and one should submit their financial statements such as balance sheet and profit and loss statement of previous three years.
After which getting the perfect home of your dreams should not be a problem. But getting a dream house is also a challenge, and many people can help to solve this challenge and find a perfect home for you, such as an agent, a broker, or a realtor.
First, let’s understand the difference between them.
Agent – An agent is a licensed individual who can help buy, sell, or rent a house. They mostly work under a brokerage firm and are paid a salary or commission on every deal they do.
Broker – A broker is a medium between the buyer and seller. They mostly negotiate, finalize the deal and oversee the overall transaction, ensuring that the seller or the buyer is not getting fraud or a bad deal. As payment, they charge brokerage, which may be 2% to 5% depending on the deal.
Realtor – Realtor is a real estate agent who is a member of the National Association of Realtors. They mostly work individually and not under any firm or company. Their main work is to buy, sell, and negotiate the deals, ensuring that every transaction goes smoothly, including all the paperwork. They are governed by the National Association of Realtors and have to follow their strict code of ethics.
Even though these terms are often used interchangeably, there are subtle differences that may help you find the perfect professional for the job. As far as the professional aspect, anyone can be a real estate agent. It does not always require a license, but not everyone can be a realtor or a broker as they require advanced skills and licenses, and are said to be certified to perform their job well.
So the next time one dreams of buying a house, first find the home loan options, check the eligibility criteria, and the EMI calculator. They avail the services of the professional who will help to find a nice house and ensure that they get all the transactions done smoothly so that one can enjoy the luxury of their new place.
