Top 12 Terms You Must Know Before Taking Home Loan!

Taking a home loan is a mammoth task, especially with all the paper work and cumbersome legal formalities involved. A lot of first time home loan customers are unfamiliar with several loan jargons and find themselves at a loss while dealing with bank officials and builders. But taking a home loan is one of the biggest financial liabilities you will incur. Thus, before you take the leap, you must familiarize yourself with related terms and common practices.

So, we have compiled a list of 12 Common Terms You Must Know Before taking a Home Loan:

1) Margin

2) Offer/Sanction Letter

3) Post Dated Cheques

4) Disbursement

5) Equated Monthly Installments (EMI’s)

6) Pre – EMI

7) Resale Property?

8) Pre – Approved Property?

9) What is Credit Appraisal?

10) Is Pre-payment of Home Loan Beneficial?

11) Security

12) Processing and Administrative Fees