Every person dreams of having his own house. But when you think of buying a house for the first time, the home loan process can seem a bit difficult. In this guide.
1. Basic understanding of home loan
- Bank gives you money to buy a house
- You have to pay EMI every month
- EMI is calculated on loan amount, interest and time
2. How much money loan will you get?
Banks look at:
Your monthly income
Your existing loans
Credit score (700+ is good)
Property value
Example: If your salary is 50,000, then you can get a loan up to 3-3.5M
3. Required Documents
- copy of CNIC
- 6 months bank statements
- salary slips (for employed people)
- property papers
- tax returns (for business people)
4. Types of interest
| Fixed Rate | Floating Rate |
|---|---|
| EMI is always the same | EMI can be changed |
| Safe option | According to the market |
| For long term | For short term |
5. Benefits of Government Schemes
PMAY Scheme:
- Subsidy up to 267K
- For low income people
First Time Buyer Benefits:
- Less processing fee
- Less soy for the first 2 years
6. Smart Tips For Loan Approval
✓ Keep a credit score of 750+
✓ Keep a 20% down payment ready
✓ Compare rates from 3-4 banks
✓ Add a co-applicant (Husband/wife)
7. 5 big mistakes to avoid
- Do not take loan by just looking at EMI
- Do not forget processing fees
- Check property papers carefully
- Do not forget to take insurance
- Do not keep tenure too long
8. How to use EMI calculator?
Enter these inputs in online calculator:
- Loan amount (e.g. 3M)
- Interest rate (e.g. 8.5%)
- Tenure (e.g. 20 years)
Result: You will know how much you will have to pay every month
9. How to get approval fast?
All documents should be complete
Existing loans should be less
Job should be stable
Add co-applicant
10. Final Checklist
- [ ] Decided on Budget
- [ ] Selected Property
- [ ] Deposited Down Payment
- [ ] Compared 3-4 Banks
- [ ] Got Documents Ready
Final Words
Buying a house is a big decision, but you should not be afraid. With a little hard work and proper planning, you can get your dream house. Take the first step today!