Every person dreams of buying a home and, today, home loans are the means to fulfill this dream. However, buying a house using a home loan requires financial planning and prudence since it is a major financial commitment. There are, however, several elements to consider while arranging for a home loan.
Amount of Loan
The amount of loan to be borrowed is based on the cost of the house, one's monthly income, age, job stability and other financial commitments.
Based on certain parameters, some bankers may also provide a loan which is more than one's actual networth.
In the end it is one's responsibility to analyse the networth and decide the amount to be borrowed.
One should also consider future plans and funds required for such plans before taking the loan.
Text: Anil Rego, Business Standard
Images: AFP and Reuters