If you want to accommodate your growing family or improve your living space, expanding your current home is a better choice than purchasing a bigger house. To fulfil this dream, you can get a Home Loan to expand your home. A Home Extension Loan provides sufficient funds to expand your existing property. Here are the steps for applying for this Loan:
- Learn about Loan options
You can use a Home Extension Loan to add new rooms to your home. However, several lenders offer this Loan with different interest rates and repayment structures. So, always check and understand different Loans with different terms and repayment structures to make the best decision.
- Check your eligibility
Eligibility for a Home Extension Loan depends on your income, employment type, and credit score. So, check your lender’s required eligibility criteria before applying. Usually, lenders allow salaried and self-employed individuals to apply, provided they meet the lender’s eligibility requirements.
- Review interest rates and charges
Interest rates depend heavily on your financial profile and your lender’s policies. So, check the interest rates offered before applying. Additionally, your lender may impose certain fees and additional charges, so review them before proceeding with your application for this Loan. Being aware of any fees and additional charges helps you avoid unexpected fees and make more informed financial plans.
- Understand the disbursement process
Unlike traditional Loans, a Home Loan for Extension is disbursed in phases. This means that your funds are released based on the progress of your property’s construction. Additionally, lenders may conduct site visits to ensure proper fund utilisation before each disbursement.
- Choose a suitable repayment plan
Lenders offer various repayment options, including interest-only payments during the construction period. Therefore, always select a repayment plan based on your financial situation to ensure manageable repayment obligations.
- Prepare necessary documents
Submitting the right documents at the right time to your lender speeds up your Loan process. They may ask you to provide documents related to your identity, income, and residence. Additionally, some lenders may ask for additional documents.
- Submit your application
The Loan process begins by submitting your documents online or at your lender’s branch. Once verified, the lender assesses your eligibility and sanctions the Loan even within 72 hours. Once you get the Loan amount, you can start using it immediately.
- Manage your Loan efficiently
Once you get a Home Loan for Extension of your property, always manage it properly rather than just using it carelessly. You can achieve this by making timely EMI payments and maintaining a good credit score. Additionally, you can track your expenses and set aside some funds for repayments. This helps you prevent any financial strain in the future.
Conclusion
Obtaining a Home Extension Loan helps upgrade your property without incurring any financial stress. By following these steps, you can easily get this Loan.