'Buy a home' is a milestone on several individuals' bucket lists, and maybe yours too. If you have been contemplating buying a home for a while, then consider one now. Due to the thriving real estate market, your dream home could cost a lot more in the future. Buying a house requires a significant amount, so you may be unable to self-finance. Does that mean you should drop the idea of purchasing a home? Not really.
Every bank has a range of financing options that make it possible to realise your dream of buying a home. A Home Loan is a viable financing option to explore. It lets you borrow up to Rs. 5 crore at a competitive interest rate for the tenure of your choice and systematically finance your home purchase. If you need to accommodate your growing family or simply want to earn a profitable investment, buying a second home may be ideal.
In that case, you can apply for a second Home Loan to finance your second home purchase. Let us understand how.
How to apply for a second Home Loan?
There are scenarios under which you apply for a second Home Loan. You can apply while your existing Home Loan is still active or once you have fully repaid your existing one. The following pointers explains how the second Home Loan application works:
Scenario 1: Applying for a second Home Loan with an ongoing one
- You can approach your existing Housing Loan bank or another bank for the second Loan application. Ideally, approaching your existing bank is better as it reduces the processing time.
- The second Home Loan application procedure remains mostly the same. You need to fill out the application form and necessary documents offline or online.
- The bank decides your eligibility for Home Loan approval and to extend a suitable Loan amount. Typically, the bank approves your Home Loan request if your debt-to-income ratio does not exceed 50% and you have a clear repayment history.
Scenario 2: Applying for a second Home Loan when the first one is repaid
- You can apply for a second Home Loan with any preferred bank by visiting their nearest branch or online.
- Applying with a bank offering a competitive Home Loan interest rate and flexible repayment terms is better. It ensures you do not feel burdened with the repayment of your Home Loan.
- You need to fill out the Loan application form and the necessary application documents. The bank takes time to verify your documents and establish your Loan eligibility.
- Upon verification, the bank may accept or reject your Loan request. If your Loan is approved, review the offer made by the bank. Accept the offer if you think it is suitable for your requirements.
