Facts About Self-Construction Home Loan

1. HERO HOUSING FINANCE LTD Facts About Self-Construction Home Loan Are you planning to construct your own home instead of buying one? Well, in that case, you will come across various new and beautiful things to experience. It would also require you to apply for a home building loan. This type of loan has a set of procedure which you need to follow. A home building loan comes with a lot of benefits too. In this guide, you will learn about a house construction loan in detail, its types, procedures, benefits, etc. So, you must read on to know more. Home Building Loan- What is it? You can take a home building loan for constructing your own house. If you are not interested in purchasing a house, this type of loan can significantly benefit you. During the entire work, the lender will pay out in stages. When you apply for this loan, you must provide a detailed construction timetable, plan, and budget for construction to the lender. After the loan's approval, the amount gets disbursed in stages as per your construction requirement. The lender would inspect the site of the building during the work. They may send a third-party also to do the same. Types of Home Building Loan There are three types of home construction loans that you can avail of. All these types are briefly discussed below. Self-Construction Home Loan- This type of loan is best for two cases. If you have purchased a plot or already have one then, you may opt for this loan. You will need funds to construct your home on the property. This loan will help you to do that. Home Renovation or Extension Loan- A home extension loan can help you whenever you need extra funds to extend your home. Not only this, but you can also avail of this loan if you want funds to carry out specific major repair or renovation works in your home. Plot/Building Loan- This type of loan works well for those who want to purchase a plot and construct their home. But if you are buying the plot but do not construct your home, it would require you to apply for a personal loan. Such a loan will not be considered a home building loan.

2. Why should you consider taking this Loan? With a home loan for self-construction, you will have the complete freedom to renovate, extend or construct your home just as you have always desired. You can choose the building materials, colour, or the design yourself. Also, there is no need for you to pay the interest at once. The lender pays out the amount in stages as per the steps of your construction. Hence, you have to pay the interest on the amount disbursed to you at a particular time. The best part of this type of loan is that you can rebuild or renovate your home anytime you want. If you wish to renovate your house or extend it, a home construction loan will be advantageous. You may opt for this loan whenever you think it is necessary. How can you apply for this loan? You can apply for this building loan when you want funds for building your house. The procedure to avail of this loan is entirely different from the regular personal loan that you take. A building loan is not to be confused with a home loan or plot loan. Apart from pricing, these three types of loans are different from each other in terms and conditions. The approval, disbursement, and repayment process are also not the same. A good credit score will ease the Process. The higher your credit scores, the higher will be the chances of getting your loan approved. Make sure to maintain a clean record of all your previous loans. The lender will approve the loan based on your income and repayment capability. It would help if you calculated the eligibility and the EMI to get your loan approved. You have to provide the property documents as well as the budget to the lender. Look for reputed contractors for constructing your home. It will act in your favour when you approach the lender. The home building loan can be a hassle-free process once you have had a complete understanding of this loan. HHFL – Home Loan Feel Free to call - 1800-212-8800 https://www.herohousingfinance.com/ customer.care@hhfl.com