Types of Home Loans to Suit Your Need
Today, the property market offers some of the most attractive homes in the form of sophisticatedly designed apartments, townhouses, villas, penthouses, studio flats, etc.
Likewise, there are many banks and financial institutions that offer finance for buying a new home. You can find them offering very attractive interest rates for which it is easy to make monthly repayments. They process the loan quickly so that the loan amount is available as soon as possible for you to make a purchase.
Types of Finance Options for Buying A Home
No longer do you have to put aside the opportunity of buying your dream home due to lack of adequate finance. There is a loan available for every type of property purchase. Here is a look at the different types of loans available for buying homes which you should be aware of to select what is appropriate for your needs:
- Purchasing land – Here the property that is going to be purchased is land on which the owner can build a property right away else later.
- Buying home property –Here the property is in the form of a one, two, three, four or five-bedroom apartment or even an independent home or villa.
- Constructing a Home – In this situation, the property is not yet built. Loan taken will be for construction of property according to the owner’s specific requirements. The loan takes into account a rough cost of building property and also includes the cost of plot. The amount can be given in a single lump sum or disbursed in installments.
- Extending the home – You might want to add a small room to the home or construct the upstairs portion of the home for which extension loans are available.
- Buying new property with existing loan – You have already bought a home on loan but find a more attractive one, now on the market. Through conversion loan, the existing loan can be transferred to buy the new property.
- Enhancing the home – In situations where your home needs painting, electrical repair work, rebuilding of a broken wall, building up a fence etc, home improvement loans are available for funding such needs.
- Getting a better lender – You might be already having a loan, but want to move to a new lender due to better interest rates, longer repayment period, better customer eservice etc. Check out balance transfer home loans for this purpose.
In addition to these home finance loans, you can also find bridge loans which are offered for those who are in the processing of selling off an existing property and buying a new one. The loan will offer money to buy the new property and has to be repaid when the existing property is sold, which has to be done within a two-year period.
How to Avail the Best Property Loan?
You should look into the specific loan type applicable for your intended purposes. Specifically look for institutions offering a lower interest rate and long repayment period, so that the monthly installments are easy to bear. It is best to opt for a lender with low processing fees and fast application.