Buying a home is a sought-after aspiration, and home loans help many prospective homebuyers fulfill this aspiration. With the rising standard of living, not all can purchase their dream abode merely with savings. Fortunately, home loans act as a savior in such situations. While applying for the same, consider some essential factors, such as loan tenure, home loan interest rate, credit score, loan amount, etc. It also makes sense to use a home loan EMI calculator to find out how much monthly EMI you would be shelling out each month.
Similarly, as a prospective home loan applicant, you should know the various forms of home loans available and which one suits you most.
1. Home purchase loans:
Buying a newly constructed or under-construction flat, villa, bungalow, or any residential property is the regular type of loan. With this loan, you can also purchase a pre-existing or resale property.
2. Home construction loans:
If you wish to construct a bespoke home from scratch with the desired features, you can opt for a home construction loan rather than buy a pre-constructed property. Of course, you would also need to have a plot of land ready for use to avail of this loan.
3. Land-purchase or plot loans:
This loan is somewhat related to the home construction loan. If you plan to buy a plot of land to construct your customized home, you can apply for a land purchase or plot loan.
4. Home expansion or extension loans:
This type of loan is relevant as the tastes and interests of individuals are likely to vary with changing times. It helps the homeowner to expand their current property. So, if you need to add an extra room to your existing property, alter the room size, or add another floor, a home expansion or extension loan can be handy. You can use this loan even when you plan to convert two flats into one.
5. Home improvement or remodeling loans:
After every few years, you may need to repaint your home, fix any leakages in the ceiling, or may want to redo the electrical wiring to give your home an improved look. You may also want to remodel your abode by adding marble flooring or converting your kitchen into modular. In such cases, availing of this loan helps meet upgrading expenses.
While not each of these loans aims to help you buy a new home, they are all considered home loans. So, whether you want to buy a brand-new property, build one, or even make major or minor changes to your existing property, there is a home loan that can suit your needs.
