How to Avail a Home Loan

David Justin Urbas is of the view that if you are planning to get a loan for a long duration, it is advisable to go for a floating rate loan.

Buying a house is a dream for many and it is a huge financial decision. With the rise in real estate prices, buying a home from personal savings is almost impossible for first time buyers. Availing a home loan is the only way to fulfil their dreams. According to David Justin Urbas, getting a home loan is not very difficult nowadays as all banks and NBFCs offer them at different rates.

Justin Urbas

Steps for Availing Home Loans

  • Check the eligibility criteria

Lenders will first assess your income, credit score etc and decide if you have the repayment capacity of the loan amount that you want. The loan will be approved only if you satisfy the eligibility criteria.

  • Find types of loans available

Loans are generally of three types – fixed interest, floating interest and combination loans. A fixed interest loan is one where the interest rate will be fixed throughout the entire tenure. On the other hand, for floating interest loans the interest rate varies according to a benchmark rate. Combination loans are partly fixed and partly floating. David Justin Urbas is of the view that if you are planning to get a loan for a long duration, it is advisable to go for a floating rate loan.

  • Assess your loan

It is better to get your loan pre-approved and then search for homes because that will help you fix your exact budget.

  • Fix your loan amount: Depending on your credibility, most lenders will be ready to pay 70-90% of the entire amount for buying the property. Make sure that you have the remaining balance to pay the rest of the amount.
  • Check the cost of loan: The cost of home loan includes processing fees, interest payments, admin charges etc. Whenever you are taking a loan, ensure that there are no hidden charges.
  • Determine EMI: Based on the loan principal and interest rate, calculate the monthly installments that you need to pay. If the amount seems feasible, go ahead with the loan otherwise reconsider the loan amount you want to take.
  • Decide the tenure: Home loans can be sanctioned up to 30 years. Depending on your age and income, you can decide the time period in which you want to repay the loan.

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  • Loan verification

Before getting a home loan, the lender verifies a few documents. These are

  • Credit documents– Generally salaried people need to show salary slip for the last 3 months and self-employed people need to submit income tax returns for 3 years.
  • Property documents– These include title deeds and agreement to sell. Based on these, the lends will do proper due diligence of the property.
  • KYC documents– KYC includes the identity and address proof of the person taking the loan eg. Aadhar card, passport, PAN card, voter ID etc. This is used for background verification.


  • Check for insurance cover

It is advisable to buy a loan cover term assurance plan. This would be safer for your family because in case anything unfortunate happens to you, the loan would be covered by the insurance company.

Having an eye for little details can make you choose the most appropriate home loan scheme. According to David Justin Urbas, you need to be familiar with the above-mentioned steps before availing of a home loan.