Possessing a dream home is the life’s dream of an average person and the use of a home loan comes at this juncture to fulfill the greatest dream. If you wish to buy a property whether it is a luxury home or a smart home, loan is the best option even if you can manage the finances of the property alone. Here we are listing the major advantages of buying a property on home loan.
A property buyer is unable to check the authenticity of the title deeds as well as the legal documents and it is better to pass on the job to the bank. By opting for a home loan, banks will run a well analysed legal check on the property documents and will approve the loan only if all the legal aspects of the property are satisfied. This will take a great burden away from the mind of the property buyer. In the case of middle class, home loan is the best financial option to purchase a luxury home. Thus, the potential buyer is saved the time and hassles to verify the authenticity of the property documents.
Apart from the greatest advantage of a bank’s due diligence helping you analyse the authenticity of the legal documents, bank loan also comes with a series of tax benefits. The Income Tax Act, 1961 provides tax benefits for people who have applied for home loans to purchase their dream house. If the buyer books a property that is under construction and gets partial disbursement of loan according to the stages of completion, tax benefits can still claimed by him.
The following points should be analysed carefully before taking a home loan
- Before selecting the home loan lender, the terms and conditions, rate of interest put forward by them should be carefully verified and satisfied.
- It is not advisable to choose a home loan lender before identifying the property.
- Although you take a home loan, it will be a wise decision to fund 25 – 35 % of the property cost by yourself.
- You should take into consideration at least three home loan vendors, compare their charges, make a decision after bargaining.
- Apart from the interest charges, a thorough check should be made on the processing fees, valuation fees and other hidden charges.
A home loan should be taken only after being satisfied with all the above aspects of a lender.
The advantages of buying a property on home loan are greater when compared to the disadvantages. Buying a luxury home with all the modern amenities is a beautiful dream which can be given colours of reality with the help of a home loan.