There are many reasons due to which one should consider home loan as a very important investment cum savings tool
Self Employed Applicant-
All documents remain same as that for salaried applicant except for proofs of income which are the following:
Along with this, property documents like Agreement, OC, Society NOC, Local body approval, Approved map etc. are also required.
S4L Expert's Advice
The best way is to take a pre sanction approval from a bank which is based on the individual's financial strength. Usually these sanction letters are valid for 2-6 months varying among the banks.
Now, with a pre-sanction letter from a reputed lender, an individual can negotiate better while finalizing a property.
Also in this way, lot of time can be saved in the final disbursement process.
Unlike other loans where the individual know the quantum of money he/she wants to borrow, in case of home loan it works the other way round. The individual determines the maximum loan he can avail then he/she tries to a property which fits in the budget
There are two types of interest rates available in the market:
One should borrow only the max amount which he/she can repay comfortably. Missing on your EMIs or defaulting on your home loans will adversely affect the CIBIL score and thereby reducing chance to avail any other loan in future.