How to Get a Loan to Buy a New House Using an Existing Property

Purchasing a home is a necessity for some, while it is an investment for others.

a Loan to Buy a New House

A loan against property can provide you with funds quickly so you can purchase a new house, whether you want to live in it with your family or invest in it to reap large dividends. A loan against property allows you to cash in on the unused value of your asset, which you can then use to purchase a new home.

 

But why would you take out a loan against your home when a home loan with the lowest interest rates is available?

The Benefits of Using a Loan against Property to Purchase a New Home

When you compare a home loan to a loan secured by real estate, you’ll notice that they’re both mortgage loans. Both accept your home as a form of collateral and loan you money. A home loan, on the other hand, provides funds solely for the construction or purchase of a home, whereas a loan against property provides funds for any purpose. As a result, unlike a home loan, you can use the loan against property funds for anything related or unrelated to the purchase of a home.

The eligibility criteria are another factor that makes a loan against property accessible. While the requirements for a home loan are stringent, the requirements for a loan secured by real estate are much less stringent. If you cannot produce income proof or an ITR, and you do not have a credit score of at least 750, which is usually the bare minimum for a home loan, you may still be able to apply for a loan against property with the lowest interest rate.

As a result, wise borrowers frequently use a low-interest loan against property to purchase a new home, as it saves them more money in the long run than a home loan.

 


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The Loan against Property Application and Approval Process

A loan against property can be applied for in a matter of minutes. You can use an online EMI calculator to figure out how much of a loan you’re eligible for and how much you’ll have to pay in EMIs. You can then apply for the loan online by uploading your documents. Alternatively, you can go to a lender’s branch office and fill out the application form by hand before handing it over to a representative.

The lender will send a loan officer to your registered address after you submit the loan application form for original document verification and property appraisal. You can expect the funds within a day or two after the verification process is completed.

 

Criteria for Eligibility

If you are between the ages of 21 and 65 at the time of the loan maturity, you can easily apply for a loan against the property. Furthermore, you must be a resident of India. Furthermore, your income must be consistent enough to cover the increased financial liability.

 

The Required Documents

Along with the application form, you must submit documents such as identification proof, address proof, income statement, bank account statement, Income Tax Returns, processing fee cheque, and property documents to obtain a loan against property. You can, however, apply for a loan against property without providing an ITR or proof of income. However, the lender may require you to show proof of your income.

 

Summary

You can use the latent power of your asset to create new assets with a loan against property. Now is the best time to apply for a loan against the property because interest rates are near their lowest levels.

 


 

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Disclaimer: The views of this expressed above are for informational purposes only based on the industry reports & related news stories. Navimumbaihouses.com does not guarantee the accuracy of this article, completeness, or reliability of the information & shall not be held responsible for any action taken based on the published information.
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