Thursday, 1 October 2015

Home loan without down payment



Sonia is a creative head at a digital agency in New Delhi. She’s ready to turn a homeowner because she has a stable career, plans to be in the country for the estimated future, and has sufficient money for a down payment on a home. Plus, she is sick of a rental apartment and constant relocation. Most people like Sonia understand her incentive to purchase a property because it brings her stability and independence. Sonia begins her search for a house by looking for a home loan with zero downpayment. Confused? Read more to find out why a home loan is the first step in finding a home.

Home loan with zero down payments

‘Down payment’, simply put, is the difference between the purchase price of a property and the mortgage loan amount. With a percentage of the total cost of the home paid at the onset, the consumer shows their seriousness and commitment to fully undertake their responsibility to pay off the home loan. A down payment also indicates credibility and protect’s the lender’s interests. Normally, down payments range from 15 per cent to 20 per cent of the total value of the property.

So, can you buy a home with no downpayment? Typically yes you can. In case of Sonia, if she had a robust credit limit, a good bank or lender will offer her a ‘zero-down-payment’ loan based on good credit history. Plus, Sonia, a single woman, would typically purchase a smaller home if she qualified for the loan. Lenders prefer that you purchase a relatively smaller home with a zero down payment. However, ‘zero down payments’ means that you are borrowing more, making your monthly installments higher. Further, defaulting on even a single payment might initiate foreclosure proceedings against you.

Home loan, a good option

A home loan helps you tide by in order to make your dreams of purchasing a property come true. So why not look for a home loan that provides you convenience and allows you to breathe easy while building an asset? A good lender like Bajaj Finserv not only allows you to apply online for a loan, but also helps you calculate your EMI online, submit documents, and even qualify for your loan online. In fact, Bajaj Finserv has taken the home loan process to the next level of providing the consumer immense comfort.

4 steps to get a home loan

If you are considering purchasing a home and are on the lookout for a good financial lender, we recommend that you follow the process below.

1. Check your Home Loan Eligibility: The rules of eligibility for a home loan are simple. Lenders look for stability and ability to pay. The rules for eligibility differ as per your source of income. Check here for home loan eligibility for a salaried person and for a self-employed individual. If you are eligible and get your approval instantly, you can enjoy 3 EMI free months to help give you a cushion to plan your finances with a home loan from Bajaj Finserv.

2. Gather documents required for a Home Loan: The most tedious part of the loan seeking process is getting together the eligibility documents for a home loan. With online applications, this tension gets reduced considerably. No more running around getting photocopies or arranging them in folders. With online Home Loans, like the one offered by Bajaj Finserv, you only need your salary details, and your personal account number and you’re good to go.

3. Check Home Loan interest rates: While shopping for home loans, do look for low interest rates as interest rates have an impact on your EMI payments. Look out for competitive interest rates. A classic example is 9.85% offered by Bajaj Finserv. The NBFC allows you to qualify for a home loan in 5 minutes for an amount starting at Rs. 30 Lacs upto Rs. 5 Crores. The approval comes through online! Click here, if you are interested in understanding common home loan terms in the simplest way.

4. Apply online for a Home Loan: Probably the best part about online home loans is the fact that you never have to worry about banks being closed on the weekends or rushing from work to get there before closing time. Even if you’re sitting at the airport late at night on a Sunday, you can just log on to a website like Bajaj Finserv and go through the entire process of online home loan in less than 10 minutes.

Good news for home owners

For previous home owners, there is good news as well. If you have purchased your property within the last 12 months by using your own source of funds, you can avail refinance option and take a loan up to the registered value of your property. After your first EMI, you can choose to part prepay your loan at no charge up to 6 times in a calendar year. Each part payment amount cannot be less than the sum of 3 EMIs. Also you can enjoy nil foreclosure charges.

No comments:

Post a Comment