Most banks also require that the borrower take out an insurance policy to protect the home loan. This is to ensure that they will get their money back if the borrower dies or is for some other reason incapable of servicing his or her loan. After all, such an agreement between borrower and lender is over extended periods of time. A home loan is generally repaid over several years, unless the borrower finds the financial means to prepay it in part of in totality.
While all this may sound complicated to first-time borrowers, getting home finance is actually not very difficult. As long as the borrower is eligible for it, such a loan is usually made available. After all, banks depend a lot on the interest generated by home loans, and are willing to extend home loans in most cases.
