Home is the place where your heart lives. It is a place where you will spend some splendid moments with` your loved ones. It is a place where you retreat every evening after a tiring day.

However, it is not easy for a person to purchase a new home, especially after considering the rising prices of real estate. So, experts recommend people to avail a home loan to buy a new home. Availing a home loan is a simple process and you can quickly get a loan within a month or 15 days, if you have a copy of all the documents mentioned in the home loan document checklist. However, many applicants simply do not skim through the home loan terms and conditions, which in turn affect their repayment capacity.

If you are a first time home loan buyer who is not aware of the different home loan rules, but is eager to secure a loan instantly, then definitely take a look at these common rules for home borrowing.

1> Repayment Period

Repayment period for any home loan should not exceed duration of 30 years. As a result, it is recommended to avail a home loan at an early age.

2> Repayment period of pre-allotment bookings shall not exceed 1 and ½ years

3> Repayment period for loans taken for home improvement or renovation should not exceed a period of 10 years.

4> Disbursement Clause

A loan is disbursed only after considering the progress of home construction, which is directly assessed by the Bank.

5> Processing Fees

All banks in general will charge atleast 1% of the total loan amount has Processing Fees. This fee is collected along with the application form and includes the taxes.

6> Penalty for Foreclosure

Banks have the right to charge a penalty in any event of foreclosure of loan. Foreclosure can range from a few% of the outstanding amount, or a flat fee.

7> Right for Rejection

Every bank holds the right to reject a loan without assigning reasons.