Acquiring new home is one of the most auspicious moments in life. Due to falling interest rates, housing loans are now available quite cheaper. The process of online application has made the loan application, approvals and disproval quite a simple and hassle-free process.
But, you get an approval for a housing loan once lenders evaluate your credit history and check your borrowing capacity.
Here are few things to keep in mind while availing a home loan:
Interest Rate
The interest rate on housing loan is determining factor whether you should take a loan from a particular lender. Lower the rate, lesser would be the EMI outgo and more affordable it proves on your pockets. Home loans are fixed interest rates or floating rates. The fixed rates give you constant monthly installment options through the loan duration, floating rate charge with lender's economic factors, growth and changing lending practices. So, compare and weigh options before you zero in on a particular loan amount.
Check affordability
Customers should know their risk appetite and then choose a particular amount for a monthly installment that you can afford. Consider the possibilities of not getting raise very soon or due to the unexpected circumstance you can eye on loan to income ratio of 20% to 30%. This way you can at least don't develop a break in EMI payments. You can make changes in the tenure to reduce or increase monthly installment depending on your affordability
Shop around
There are hundreds of banks and private finance lenders that offer home loan at low-interest rates. But before taking a home loan, just visit online and compare the interest rates of leading players, charges structure of all available loan products. Comparison helps you to choose a loan which is not only the most reasonable interest rate but also limited fee and charge.
Take an insurance plan
Once you have taken a loan, it’s obvious you have to clear it on time. However, if anything unfortunate may happen and you might perish from the world, the liability falls on your family's shoulders in your absence. Hence, you can buy insurance cover to cover up the loan repayment costs.
Property Papers
There are a lot of fraudulent builders out there who might dupe you with fake property papers. Once the amount is transferred to the bank account they might vanish somewhere. Therefore, before you lay your hands on a property, make sure the builder is reputed and all property papers are in place. With RERA implementation, check the builder's profile online on RERA website. Lenders may often refuse to give loans if the builder is not in the approval lists.
Credit Score
One of the most important parameters, lenders adjudges loan to value is the credit score. A good credit score means you’re a responsible citizen and make all your debt payments on time. This helps you maintain good credit score and it will help you to negotiate for low-interest rate deals as well.
Follow these simple tips and apply for a suitable home loan online, now!
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