One of the most important loans in the branch of loans is the home loan. Basically we apply for a home loan when we wish to buy a house or a plot. This loan can be used in order to buy a new house which can be your dream home. The part of home loan can be used for other works related to a house. Those works can be renovation or repairs to you house.
Whenever you are planning to apply for a home loan, the most important thing you need to finalize on is the total amount of loan which you actually wish for. This thing should be clear in your mind. This can be done by making analysing all the needs in your house and how your house should be. Later you can calculate an estimate on the requirements and their respective costs. This will put together the amount which you will be needing as the home loan. The bank considers your salary and your other sources of income. Along with that, it will also consider the other obligations like other loans which you had already applied and which is going on. Considering all these factors, the bank will calculate your interest rate as well as the home loan amount which the bank can grant you on legal basis. There is also a concept called repayment capacity which is completely based on other factors like your assets, liabilities, income and monthly income. The bank will make sure of your ability to repay the loan. Your salary is the most important determinant. Higher the salary, higher will be your loan amount which will be granted to you. The interest rates differ from bank to bank. Some banks might offer you loan at a high interest rate while some banks might offer you loan at a low interest rate. The interest rates will also vary on the basis of age.
Some people might even have grievances against certain issues regarding the home loan. You can lodge a complaint regarding the same with the concerned bank and ask for a receipt. With the following time, the problems will be solved and sorted out.