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Propchill Buy Property in India

Posted last March 4, 2017, 4:44 am in Real Estate report article

When one is considering buying property in India using a loan it is crucial to understand how to finance the property. Many who are young can leverage on the future income we will earn and hence can easily avail of a home loan. There are however several factors that work against young people if such individuals try to take a home loan.

A few factors that work against a successful loan application for young people are.

Paying EMI’s on Existing Loans

If one is young and single it is likely that such a person is enjoying spending his or her time with friends and also has bought a two-wheeler or car and is paying off loans on the same. To most young people in their mid twenties such items are necessities and are a part and parcel of new found freedom and a modern urban lifestyle. Buying real estate in India is however not a frivolous activity and requires a mature buyer.

While an attractive car or bike today is a necessity, buying the same on an EMI lowers the individual’s chances of being approved for a home loan. Relying too much on credit signals to banks that the individual does not save enough to pay for certain products outright from his or her earnings or salary. Paying off such loans before buying a house thru a loan is recommended. By spending time online on real estate websites in India, one can judge how one should be positioned financially before applying for a home loan.

Bounced Cheque’s and Low Balance

A banking institution that wants to loan money to a prospective customer wants to ensure that they receive repayment in a safe and timely manner. If the loan application of an applicant shows that their account has always maintained a low balance it spoils the chances of being approved for a loan.

 

Additionally, bounced cheques spoil one’s creditworthiness and greatly lower one’s chances of being approved for a loan. A lending institution is risking money on someone who has applied for a loan, when it is found that such an individual has numerous bounced cheques in the past it signals to the lender that such a person is not serious about his or her financial status and also that he or she keeps a permanently low balance in the bank account.  Those who are serious about buying residential property in India need to be serious about most facets of their life.

Too Much Prada

Having expensive tastes also works against someone when applying for loan application. If someone is paid on the first of a month and by the end of the money is left with a zero balance in their account, it signals to a bank that such a person is a spendthrift and spends one’s money on frivolous luxury products. When buying real estate property an applicant must be able to signal to the lender that they are mature individuals who are serious about their first big steps in life.