Everything You Need to Know About the Home Loan Eligibility

A home loan might be a quick fix to all your home-related financial woes, but like any other loan, your lender will require you to prove your worth before awarding you with the funds.

So, how do you go about it?

It’s quite simple. All you have to do is produce all personal/professional details to your lender. Here’s a list of eligibility criteria you need to meet to successfully avail of a loan.

1. Examining your Eligibility

You’ll have to fulfil certain criteria to convince your lender(s) that you’re cut out for the loan. Here’s your home loan eligibility criteria checklist that might vary slightly depending on your lender, while maintaining the same essence:

  • Valid identification proof (passport/voter identification/ driver’s’ license) to prove that you’re an Indian resident
  • You must fall within the 25-70 years age group
  • If you are a self-employed individual, you’ll need to submit proof that your business is at least 5 years old
  • Your loan amount must fall between the minimum and maximum amount offered by your lender
  • Your latest credit report with a score of 750 or more and a brief history of on-time payments and credit utilisation

2. Documents Required for Home Loan Sanction

Once you’re eligible, the financial institution lending you funds will require documented proof of your existence and financial stability. Here are the papers you’ll have to put up:

  • Complete Home Loan application with all your credentials
  • Latest passport size photographs
  • Proof of identification (voter’s identification/passport/driver’s license)
  • Proof of residence (voter’s id/water or electricity bill)
  • Proof of business address (in case of self-employed candidates)
  • Bank account statement for the past six months
  • Signature identification
  • Personal assets and liabilities statements in a proper format as stipulated by your lender
  • Detailed information about loans you’re already paying including details of the lender and securities mortgaged

If you’re a salaried individual, you’ll have to provide the lender with additional documents. Here’s a list to help you organise your papers:

  • Original salary certificate for the previous month
  • Tax Deducted at Source certificate – Form 16 or a copy of the IT returns you’ve made in the past two years acknowledged by the Income Tax Department

For a self-employed individual running an enterprise, the additional documents to be submitted are as follows:

  • Income tax returns made in the past three years acknowledged by the Department of Income Tax
  • Receipt copies of advance income tax payments

3. Property Documents Required for a Home Loan Sanction

When you put up your property for a home loan, the financial institutions will demand legitimate paperwork to clear it of any illegalities before the loan amount is sanctioned. Here’s a list of documents you might have to produce if asked by your lender:

  • Agreement of sale
  • Paid building and land tax receipts
  • Certificate of possession
  • Location sketch of the property certified by revenue authorities
  • Letter of allotment issued by housing board or private builder
  • Receipts of advance payments made towards purchase of the flat
  • Non-encumbrance certificate
  • Original NOC under Urban Land Ceiling Act, 1976
  • Copy of relative order if the land has been utilised for agricultural purposes
  • Original NOC from Housing Society or private builder
  • Detailed estimation of the cost of construction

A stellar paper trail is undoubtedly the best method to get your loan application approved because those pieces of paper justify your ability to repay a loan. You’ll have to think of it as a job interview. Every detail mentioned in your documents has to be legitimate to get the final nod of sanction from your lender.

Smart Residential Property Investing and Rental Remodeling/Renovation Advice

The decisions people make with regard to residential rental property investments can be surprising. While the goal is always to make money, the approaches are varied and sometimes even counterproductive.

What makes rental property ventures successful long-term? What do smart investors do differently to make these enterprises consistently lucrative? In searching online, one is challenged to find a concise, comprehensive overview of answers to these questions.

With twelve years experience in residential property investing and management, it is clear to this writer that there are certain attributes and practices which characterize successful investors. After years of close observation, the following insights are offered for your consideration and reference.

7 Key Attributes of the Smart Residential Property Investor

• Sets clear and achievable short and long-term revenue goals, with realistic timeframes.
• Has a firm grasp on the financial requirements.
• Thoroughly researches property candidates.
• Buys rental property with prime location, sound structure, minimal repair requirements, at best price.
• Calculates property appeal for rent-rate ratio (i.e., poor appeal equates to lower rent rate, higher tenant turnover; high appeal equates to higher rent rate, lower tenant turnover).
• Understands curb appeal has a direct correlation to renting units faster.
• Knows that proper and timely repairs and maintenance help preserve equity.

The wise investor also appreciates how scaled renovating/remodeling can increase equity and maintain a top-quality tenant base. For those with a plan to sell the property within a predetermined timeframe, such improvements prepare the property for that eventuality while reducing impact to cash flow and minimizing cost spikes. They also know that potential buyers will be evaluating not only the innate property value, but also the renter history (i.e., rent and turnover rates, repair/maintenance records).

4 Key Reasons to Update/Remodel Rental Units

• Maintain, better yet increase equity.
• Attract better-qualified tenants; garner higher rent rates.
• Amortize costs in preparation to sell.
• Earn tax advantages.

3 Key Renovating/Remodeling Considerations

• Do not under or over remodel/renovate.
• Remodel costs will generally need to be depreciated rather than deducted.
• Time improvements for when unit is vacant and ideally off-season.

6 Highest ROI/Most Cost Effective Property Improvements

• Thorough cleaning
• Paint, exterior and interior
• Carpeting, flooring
• Kitchen and bathroom: Resurfacing versus replacing
• New windows and/or doors
• Curb appeal

The savviest of investors are those who take the time to conduct careful research, analyze and regularly review financial data, make calculated property purchases, maintain and periodically upgrade property for optimal equity, and properly manage renter relations.

Tips on Investment Properties for Beginners

When you have extra cash and want to invest it the best option is real estate because they have high returns. Although property prices in the short term may go up and down, they appreciate substantially in the long run. Investment properties are something that you can bank on as it will acquire value with the development of the areas in the vicinity of the property. There are risks that cannot be completely eliminated but if you do a thorough research and planning you can lessen the risks. If you are a beginner investor, investing in real estate can seem daunting at first. Here are some tips to help you make the right investment choice.

• Know the range of options for real estate investment-you can invest in buying commercial properties, residential houses, apartments, condos, or land so you need to study which would be a better investment for you. There are many options so you will need to do your research to see which one will align with your future plans and stay within your budget.

• Why investing-are you investing to buy to sell again for a profit or do you want to rent the investment property? If your investment properties are residential you can create a regular income by invent in rental properties. You can also be a “house flipper,” which is where you buy an older home, renovate them, and sell them for a profit. If you decide to invest in commercial property you can hold it until the prices go up and then sell it to make a good profit.

• Location-when buying an investment property remember it is all about the location. The price of the property is largely a function of where it is located. Where the property is helps to decide the price range. Make sure that you research the price trends according to different locations before you buy investment properties.

• Network with a real estate agent-they can make your job a lot easier finding the type of property you want to buy. When you network with real estate agents they can help point you toward investment properties that fit your plans. A real estate broker will handle the legal work that is involved with the sale and purchase of the property for you. They can also make an offer and negotiate for you.

• Make financial arrangements-once you chosen the investment property you will need to arrange a mortgage to pay what your savings do not cover.

The most important thing to remember when buying investment properties is to do your research.

Five Ways A Real Estate Agent Can Help You Find Your Dream Home

Having a real estate agent can help take the mystery out of shopping for your new residence. Many folks think that it is easier to shop for themselves. However, having an agent provides a significant advantage over trying to search on your own.

Realtors Have In-Depth Knowledge

Firstly, a realtor will have in-depth knowledge that goes beyond how much square footage is in a house or how many rooms it has. This can include an understanding about the type of piping that is used in the bathrooms and what types of schools are in the area. Your realtor can also tell you about the community, which can be especially helpful if you’re moving from out of state.

Realtors Have Ethics to Stand By

Another reason to feel confident about using a real estate agent is that all realtors must conform to the Realtors Code of Ethics. This requires all individuals working with a realtor to be treated equally, professionally, and fairly, no matter what their background. You can go into a realtor’s office knowing you are entitled to a professional experience.

Realtors Protect Their Clients

Realtors also have a fiduciary responsibility in helping you. Realtors protect buyers when doing transactions on their behalf, guiding you away from someone who might try to take advantage. Your realtor can offer you their opinions and guidance on whether a house is a good buy or not.

Your Realtor Knows the Current Laws

Realtors make it their job to keep up with the latest rules and regulations surrounding house buying. Since they are required by law to stay abreast of any changes, your real estate agent can advise you on current laws about buying, from helping you with contracts to understanding different types of riders. Because laws vary by state, if you are relocating from a different area, having an agent can be a major asset.

A Realtor Will Help You Get the Right Price

Finally, your realtor will be able to assist you in coming up with a price that is right for you. Your real estate agent can negotiate a price on your behalf. Since your agent will have experience in doing this, it will come more naturally to them. If you are shy when it comes to bartering, you can rest easy and let them act on your behalf. They will work to get you the lowest price possible and make sure that your buying experience is as pleasant and enjoyable as it can be.

Once you start working with an experienced real estate agent, you will be amazed at how easy it is to find the home of your dreams.

Eight Qualities to Check Out in Professional Real Estate Brokers

Are you thinking of selling your house? Getting confused whether to hire a professional agent or not? Well, for selling or buying a property, no one can help you better than professional real estate agents. They are trained professionals who hold many years of experience and knowledge in this field and thereby, can best serve your requirements.

In these days, the real estate business is booming these days. Lots of people are investing in buying and selling properties and this leads to increase in demand for professional real estate brokers. Everyone wants to get a good deal and a professional agent can help us getting a deal we need. However, not all agents are capable enough to generate a good deal. You have to consider certain factors that can help you selecting the right agent for your property.

Here, in this article, you will come to know about eight important qualities or characteristics to check out in a real estate agent. Let’s have a look at them –

Eight important qualities to check out in a good real estate agent

Detail knowledge about the market

A good real estate agent must have detail knowledge of the market where you are going to sell or buy a property. He or she should be capable of providing detail information about the properties available in an area, their average price rates, facilities, and so on.

Must have efficient organizational skill

A real estate agent having good organizational skill can better convince a buyer. They work with proper attention that helps them selling a property in less possible time. This quality is highly required in selling market. Efficient agents know about the tiniest changes that sellers can make to the properties to improve selling possibilities. They will take the best photographs of your home to attract the attention of buyers.

Focus attention

This is an important quality to check out in a real estate broker. A reputed broker will show you his or her real aspiration to sell your property and contribute to the fulfillment of your deal. They understand that the success of your deal entirely depends on their capabilities and therefore, they try their best to meet their clients’ expectations by all means.

Social skill

A good broker should be a good communicator, diplomatic and enthusiastic. These are some important qualities to check in a professional agent. A good communicator knows exactly how to talk to a potential buyer or how to fulfill a client’s expectations at the time of property visit. They are capable of designing a framework for discussion and choose the right words for negotiation. Besides this, they are also proficient in both oral and written communication and act as per your requirement.

Must update you from time to time

Professional brokers always work in an organized way and keep their clients informed about each step they take to sell their properties. They will be available to answer your queries and provide you the right solution if requires. Whether by email, telephone or text message, a good broker will always keep himself available to serve your needs.

Reassurance

A professional broker will guide you every step you take to sell your property. He or she will give you the assurance that you won’t have to bear any kind of hassles for selling your property and the entire process will stress-free and easy. In fact, they will not only give you the assurance but also warn you if they found any problem that requires serious attention.

Loyalty

This is an important quality to find out in a real estate broker. A good broker will always stay loyal to his service. He or she will talk on your behalf and try every possible way to sell your property. They know how to establish a long-lasting relationship and keep it even after a transaction is over.

Should be a good listener

A good broker should be a good listener. He or she should pay serious attention to your words and show interest in what you are trying to explain. An efficient broker can instantly guess from your words what type of property you want and what type of constraints you may have to face. They take up each project seriously and provide tailor-made solutions to the clients.