Buying a home is a sought-after aspiration, and home loans help many prospective homebuyers to 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, keep some important factors in mind, 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:
It is the regular type of loan taken to buy a newly constructed or under construction flat, villa, bungalow, or any residential property. 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 desired features, rather than buying a pre-constructed property, you can opt for a home construction loan. 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 the land purchase or plot loan.
4. Home expansion or extension loans:
This type of loan is relevant as the taste and interest 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 maybe add another floor, a home expansion or extension loan can come in handy. You can avail of 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 a modular one. In such cases, availing this type of loan helps to meet upgrading expenses.
While not each of these loans is aimed to help you buy a new home, in essence, 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.