{"id":69800,"date":"2019-10-09T12:53:50","date_gmt":"2019-10-09T12:53:50","guid":{"rendered":"https:\/\/www.zameen.com\/blog\/?p=69800"},"modified":"2019-12-09T10:36:52","modified_gmt":"2019-12-09T10:36:52","slug":"basics-determine-afford-home-loan","status":"publish","type":"post","link":"https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html","title":{"rendered":"How to Determine if you can Afford a Home Loan \u2013 the Basics"},"content":{"rendered":"\n

In recent times, the wide and easy public accessibility afforded to home loan options has made owning or constructing a personal residence a feasible goal for many people. In addition to traditional home finance loans offered by banks, the government and certain private institutions also provide similar opportunities to people hoping to make good on their residential construction\/ownership pursuits. <\/p>\n\n\n\n

On the Renewed\nAccessibility of Home Loan\nOptions<\/strong><\/h2>\n\n\n\n

Generally speaking, most individuals\nhailing from the country\u2019s middle-class demographic (and up) can nowadays\neasily avail a diversified collection of home loan options. For example, banks\noffer house building loans\nif you already own a plot, home extension loans if you have a constructed house,\nand home improvement loans if you\u2019re interested in following up on a\nlong-planned renovation gig. <\/p>\n\n\n\n

Additionally, the trend of acquiring a mortgage\nis also gradually taking root in the country. This house financing route becomes practicable\nwhen you\u2019ve already selected a certain house to buy and need the required funds\nto complete your purchase. The property in this situation is termed the \u2018collateral\u2019\n\u2013 enabling the mortgage to be classed as a secured\nloan<\/em> (when considered from the banking standpoint).<\/p>\n\n\n\n

In Pakistan, there is no shortage of\navenues for acquiring financial assistance for constructing or buying a home.\nOne notable example is that of the Escorts Investment Bank (EIB), an institution\nthat not only facilitates its clients financially, it also provides educational\nmaterial for making sense of its offered monetary solutions. Additionally, the\nexperts at EIB provide advisory services regarding financial planning tailored\nnarrowly to their clients\u2019 specific requirements.<\/p>\n\n\n\n

Despite the many conveniences offered by modern house financial loans, however, they are not very easy to acquire. In contrast, it is<\/em> quite natural to get carried away when dreaming about owning a personal home; so it\u2019s important to keep your feet firmly planted on the ground at all times when you\u2019re engaged with this venture. <\/p>\n\n\n\n

Additionally, it is not always possible to afford everything that you really want to go into your house \u2013 even if you are eligible for the loan<\/a> itself. <\/p>\n\n\n\n

This blog, luckily, is your guiding resource to help you steer a clear path through this proverbial, new-age maze-of-sorts, and to score a loan deal that is workable on all counts.<\/p>\n\n\n\n

Determining the Types of Home Loans that You can Afford<\/strong><\/h2>\n\n\n\n

Taking your level of affordability into\nconsideration is essential when acquiring a bank loan for your prospective\nhouse. You don\u2019t want to end up getting a loan you can\u2019t pay back. <\/p>\n\n\n\n

Many people simply consider the upfront price\nof the property or the construction when determining which home finance loan they\ncan afford. This is the wrong way to go about this critical process. The\nexpenses of constructing or buying a house go beyond just the apparent costs.\nMany adjacent costs have to be considered as well. <\/p>\n\n\n\n

\"Listing
Determining the loan amount according to total expenses<\/em> <\/figcaption><\/figure>\n\n\n\n

Therefore, before you make one of the most important financial decisions of your life, learn what you can to determine how much you can actually afford when considering a bank loan for a house.<\/p>\n\n\n\n

Some Basic Considerations for Checking your Eligibility<\/strong><\/h2>\n\n\n\n

1. \u2018Eligibility\u2019 does not always equate with \u2018affordability\u2019<\/strong><\/h3>\n\n\n\n

Sometimes people are surprised that a bank\napproved them for a certain amount of a house building loan. This is a pleasing situation\nbut you must remember that eligibility does not necessarily mean affordability.\n<\/p>\n\n\n\n

The fact remains that banks are business\norganisations looking to make profits from their clients. So a bank may offer\nyou the maximum amount for a loan, which will mean a higher interest amount\nfrom your side. <\/p>\n\n\n\n

This is why it is important to know what you can really afford and whether you might have any alternate solutions to choose from instead. <\/p>\n\n\n\n

At EIB, you will have access to expert\nfinancial education and advice in order to plan according to the type of house\nyou require, and the amount you can afford to pay. <\/p>\n\n\n\n

2. Calculate your total expenses<\/strong><\/h3>\n\n\n\n

It is not just the expense of buying or\nconstructing a house you need to consider. There are several side expenditures.\nFor example, you will have to pay a down payment when acquiring a house building loan or\nmortgage. Similarly, if you bought a house with the loan money, then you may\nneed additional funds to renovate, upgrade, or furnish it. Meanwhile, a\nconstruction process from start to end can bring several unforeseen costs. <\/p>\n\n\n\n

\"Sketch
Calculating all costs included in home construction<\/em> <\/figcaption><\/figure>\n\n\n\n

Therefore, your approved loan should be\nenough to meet all such expenses, and not just the upfront costs.<\/p>\n\n\n\n

3. Debts and future expenses<\/strong><\/h3>\n\n\n\n

An active lifestyle means that you are\nresponsible for paying certain monthly debts. These may include utility bills,\ncar fuel costs, credit card bills, etc. Similarly, it is possible for some unforeseen\nexpenses to arise in the future. For example, in most cases, people who are\nabout to start a family seek a new home. However, having children definitely leads\nto more expenses. So you must keep all these situations in mind before\ndetermining the amount you can afford for home finance.<\/p>\n\n\n\n

Similarly, it is possible for some unforeseen expenses to arise in the future. For example, in most cases, people who are about to start a family seek a new home. However, having children definitely leads to more expenses. So you must keep all these situations in mind before determining the amount you can afford for home finance.<\/p>\n\n\n\n

4. Are you mentally prepared?<\/strong><\/h3>\n\n\n\n

This might seem like a trivial thing to think about but not everybody is comfortable with giving away a significant portion of their monthly income for loan repayments. The idea is not to rush with homeownership. It is not an easy decision. It does not hurt to delay it for when you can actually afford to do so, or have some money saved up to cover unanticipated costs. <\/p>\n\n\n\n

If you own a plot and think you are ready to develop it into an actual home, then do learn about the house finance options available at EIB. The bank is currently offering home construction loans for pursuing constructions on a plot, completing construction, and conducting house expansion spells. <\/p>\n","protected":false},"excerpt":{"rendered":"

In recent times, the wide and easy public accessibility afforded to home loan options has made owning or constructing a personal residence a feasible goal for many people. In addition to traditional home finance loans offered by banks, the government and certain private institutions also provide similar opportunities to people hoping to make good on their residential construction\/ownership pursuits. On the Renewed Accessibility of Home Loan Options Generally speaking, most individuals hailing from the country\u2019s middle-class demographic (and up) can nowadays easily avail a diversified collection of home loan options. For example, banks offer house building loans if you already own a plot, home extension loans if you have a constructed house, and home improvement loans if you\u2019re interested in following up on a long-planned renovation gig. Additionally, the trend of acquiring a mortgage is also gradually taking root in the country. This house financing route becomes practicable when you\u2019ve already selected a certain house to buy and need the required funds to complete your purchase. The property in this situation is termed the \u2018collateral\u2019 \u2013 enabling the mortgage to be classed as a secured loan (when considered from the banking standpoint). In Pakistan, there is no shortage of avenues…<\/p>\n","protected":false},"author":79,"featured_media":69806,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[29],"tags":[38548,38547,3915,4628,5306,38546,38545,43961],"persona":[38544,32423,32409],"class_list":{"0":"post-69800","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-construction","8":"tag-baking-and-finance","9":"tag-bank-loan-for-a-house","10":"tag-home-finance","11":"tag-home-loan","12":"tag-home-loans","13":"tag-house-building-loan","14":"tag-house-loan","15":"tag-lob","16":"persona-banking-and-finance","17":"persona-budgeting","18":"persona-constructiondevelopments","19":"cat-29-id"},"acf":[],"yoast_head":"\nThe Basics to Determine if You Can Afford a Home Loan | Zameen Blog<\/title>\n<meta name=\"description\" content=\"Before you jump at the chance of acquiring a home loan, go through these basics to determine the amount you can afford to borrow.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Basics to Determine if You Can Afford a Home Loan | Zameen Blog\" \/>\n<meta property=\"og:description\" content=\"Before you jump at the chance of acquiring a home loan, go through these basics to determine the amount you can afford to borrow.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html\" \/>\n<meta property=\"og:site_name\" content=\"A blog about real estate, lifestyle and tourism in Pakistan | Zameen Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ZameenPK\" \/>\n<meta property=\"article:published_time\" content=\"2019-10-09T12:53:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-12-09T10:36:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2019\/10\/home-loan.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1056\" \/>\n\t<meta property=\"og:image:height\" content=\"458\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Khadija Tahir\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ZameenProperty\" \/>\n<meta name=\"twitter:site\" content=\"@ZameenProperty\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Khadija Tahir\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Basics to Determine if You Can Afford a Home Loan | Zameen Blog","description":"Before you jump at the chance of acquiring a home loan, go through these basics to determine the amount you can afford to borrow.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html","og_locale":"en_US","og_type":"article","og_title":"The Basics to Determine if You Can Afford a Home Loan | Zameen Blog","og_description":"Before you jump at the chance of acquiring a home loan, go through these basics to determine the amount you can afford to borrow.","og_url":"https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html","og_site_name":"A blog about real estate, lifestyle and tourism in Pakistan | Zameen Blog","article_publisher":"https:\/\/www.facebook.com\/ZameenPK","article_published_time":"2019-10-09T12:53:50+00:00","article_modified_time":"2019-12-09T10:36:52+00:00","og_image":[{"width":1056,"height":458,"url":"https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2019\/10\/home-loan.jpg","type":"image\/jpeg"}],"author":"Khadija Tahir","twitter_card":"summary_large_image","twitter_creator":"@ZameenProperty","twitter_site":"@ZameenProperty","twitter_misc":{"Written by":"Khadija Tahir","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html#article","isPartOf":{"@id":"https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html"},"author":{"name":"Khadija Tahir","@id":"https:\/\/www.zameen.com\/blog\/#\/schema\/person\/bf82fa31b0adff5d00baa77dd1f7fe0d"},"headline":"How to Determine if you can Afford a Home Loan \u2013 the Basics","datePublished":"2019-10-09T12:53:50+00:00","dateModified":"2019-12-09T10:36:52+00:00","mainEntityOfPage":{"@id":"https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html"},"wordCount":1042,"image":{"@id":"https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html#primaryimage"},"thumbnailUrl":"https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2019\/10\/home-loan.jpg","keywords":["baking and finance","bank loan for a house","Home Finance","home loan","home loans","house building loan","house loan","LOB"],"articleSection":["Construction"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html","url":"https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html","name":"The Basics to Determine if You Can Afford a Home Loan | Zameen Blog","isPartOf":{"@id":"https:\/\/www.zameen.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html#primaryimage"},"image":{"@id":"https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html#primaryimage"},"thumbnailUrl":"https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2019\/10\/home-loan.jpg","datePublished":"2019-10-09T12:53:50+00:00","dateModified":"2019-12-09T10:36:52+00:00","author":{"@id":"https:\/\/www.zameen.com\/blog\/#\/schema\/person\/bf82fa31b0adff5d00baa77dd1f7fe0d"},"description":"Before you jump at the chance of acquiring a home loan, go through these basics to determine the amount you can afford to borrow.","breadcrumb":{"@id":"https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html#primaryimage","url":"https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2019\/10\/home-loan.jpg","contentUrl":"https:\/\/cdn-blog.zameen.com\/blog\/wp-content\/uploads\/2019\/10\/home-loan.jpg","width":1056,"height":458,"caption":"Basics of home loan"},{"@type":"BreadcrumbList","@id":"https:\/\/www.zameen.com\/blog\/basics-determine-afford-home-loan.html#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.zameen.com\/blog"},{"@type":"ListItem","position":2,"name":"Construction","item":"https:\/\/www.zameen.com\/blog\/construction"},{"@type":"ListItem","position":3,"name":"How to Determine if you can Afford a Home Loan \u2013 the Basics"}]},{"@type":"WebSite","@id":"https:\/\/www.zameen.com\/blog\/#website","url":"https:\/\/www.zameen.com\/blog\/","name":"A blog about real estate, lifestyle and tourism in Pakistan | Zameen Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.zameen.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.zameen.com\/blog\/#\/schema\/person\/bf82fa31b0adff5d00baa77dd1f7fe0d","name":"Khadija Tahir","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/50f2646054dd6ef91416a9d06054b3839fca5570b3dc3c739aa1ad058d707c37?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/50f2646054dd6ef91416a9d06054b3839fca5570b3dc3c739aa1ad058d707c37?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/50f2646054dd6ef91416a9d06054b3839fca5570b3dc3c739aa1ad058d707c37?s=96&d=mm&r=g","caption":"Khadija Tahir"}}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.zameen.com\/blog\/wp-json\/wp\/v2\/posts\/69800","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.zameen.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zameen.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zameen.com\/blog\/wp-json\/wp\/v2\/users\/79"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zameen.com\/blog\/wp-json\/wp\/v2\/comments?post=69800"}],"version-history":[{"count":7,"href":"https:\/\/www.zameen.com\/blog\/wp-json\/wp\/v2\/posts\/69800\/revisions"}],"predecessor-version":[{"id":69922,"href":"https:\/\/www.zameen.com\/blog\/wp-json\/wp\/v2\/posts\/69800\/revisions\/69922"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zameen.com\/blog\/wp-json\/wp\/v2\/media\/69806"}],"wp:attachment":[{"href":"https:\/\/www.zameen.com\/blog\/wp-json\/wp\/v2\/media?parent=69800"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zameen.com\/blog\/wp-json\/wp\/v2\/categories?post=69800"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zameen.com\/blog\/wp-json\/wp\/v2\/tags?post=69800"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.zameen.com\/blog\/wp-json\/wp\/v2\/persona?post=69800"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}