Some vitals facts to consider while applying for housing finance.

When you start searching for home loans, it means you're planning to move into a new flat and make a new beginning of your life.

Home Loans would be an ideal way to finance your abode, however, managing it efficiently is not an easy task and you will have to pull up your socks right from searching the property, the lenders, interest rates, monthly EMIs and flexible ways of repayments. The right housing finance provider will not only save time and money but also give a smooth and seamless processing experience through the loaning process.

You will have to assess your current financial liquidity and then arrive at a suitable loan amount you can afford. While deciding the amount you will have to take future income patterns, interest rates fluctuations and your lifestyle need as well.  Paying your EMI is something that you can easily calculate using online home loan EMI calculators. This way you will get a thorough future plan.

Below are few factors to consider before applying for a home loan:

Eligibility:

You can just visit the lender and ask for the amount you desire. There are certain factors under which your eligible loan amount would be evaluated. These are your income source, risk appetite, job or business stability, age, existing debts, property location, its market value and future value, additional income source and most importantly your credit score. After evaluating these facts lenders will offer you a particular loan amount. Lenders generally give loans up to 80 % of the total property value and it might vary based on the eligibility of the loan applicant.

Types of loans:

Home Loans serve as a host of purpose. Right from buying a new or resale property to constructing your own dream home. Home extensions to home improvement loans and plot loans, rural financing, Balance transfer are some of the categories offered by pioneer players of the market. You can visit the branch or chat online to know more about their interest rates, loan parameters, processing fee, and general terms and conditions.

Lenders Companies & banks:

It is obvious we will try to save as much as possible in terms of monetary benefits. However, other than interest rates, the post-sale service also matters a lot to consumers. One often looks for best customer service like personal assistance, understanding requirements and helping through the home loan process such as guiding you through interest rate calculations, tenure, repayment options, terms and conditions, policies and other parameters. One should look for the lending institution in a holistic way to get the best services from them.

Interest Rate:

The interest rates form the crux part of the entire home loan process. Interest rates can be fixed or floating, partial fixed-floating. There is a number of ways where you can negotiate for better interest rate deals such as having a good income source, good credit score, a property that has rising value, joint application, etc. This way you can bring down the costs of the interest rate on the home loan. A reduction of even 0.05 -0.10% can make a huge difference in your repayment amount.

Hidden Charges:

One should be aware of all the charges like processing fee, pre or post penalty charge, cheque delay, bounce or is-electronic payments, service, and administration fee, etc. All the charges will be hit upon the percentage of the home loan amount so it's going to impact your finances. Therefore, you have to give due importance to every aspect before you sign on the dotted lines of your home loan application.

Calculate your monthly installment with easy online way

Are you planning to take a home loan and quite confused about what would be your monthly installment? Well, this is a common question that floods everyone's mind when planning to apply for a housing loan. Since, this is one of the biggest borrows in life you have to be careful and understand the loan expenses from every front like interest rate, principal amount, processing fee, administrative charges.

It's because a slight misjudgment in calculations will costs you a bomb on your loan value. Therefore, it’s important you compare apple-to-apple and then carefully choose your lender as well as the principal amount.

In olden days, people use to sit with experts in banks and private lender's office to manually calculate the amount, the interest rate occurred, and equated monthly installment. However, with technology at its' par, you need not worry about the tedious calculation because the home loan EMI Calculator will calculate your EMIs for you within a couple of minutes.

With EMI Calculator you will be well-informed about your loan and its detailed structure even before you approach the bank or non-banking finance company.

EMI Calculator gives you a clear picture of your monthly installment when you enter details like your loan amount, tenure, interest rate and processing fee. They are quite simple and easy to use tools available on some of the leading banks and private players who are willing to offer home loans. They are a fast and reliable source of information to calculate your home loan monthly installment and the good thing is it won't costs a penny in your pockets when you use EMI Calculator.

When applying for a home loan, the loan amount will be your first option. Once you decide on the property and its price, you have to calculate your down payment as well. Also, you need to know the tenure of your home loan. Ideally, you can opt for the tenure of up to 25-30 years. However, borrowers have to bear in mind the longer the tenure of your loan, higher would be the amount you have to pay back. You can modify the tenure on the EMI Calculator and choose a suitable tenure that will work for you.

Once you have put the loan amount and tenure on the EMI Calculator, the next thing would be entering the interest rate being offered by the lender. You can easily check online the various housing loan rates being offered by lenders online and enter this in the calculators.

Generally, lenders charge around 1-2% processing fee on housing loans that need to be accounted for as well when calculating your monthly installments.

EMI Calculator available online also have the option to display the amortization details of your housing loan. They help you understand your principal loan amount, the interest rate paid and the total outstanding details on a yearly, half yearly basis.

Home Loan EMI Calculator is the easiest way to cut down the hassle of tedious calculations, save your time and energy and also get an exact structure your monthly installment. So, what you're waiting for? Use the EMI Calculator and kick-start your dream of owning your home!

5 things that make for the best home loan.

The best home loan – it’s something every potential borrower is looking for when considering housing finance loans. Contrary to common belief, the best loan isn’t the one that comes with the least charges. Rather, the best loan is one that suits your needs the best and covers every possible aspect to ensure your journey through debt is a smooth and hassle-free one.

In case you are in the market for a home loan but aren’t exactly sure how to choose the best for your needs, this article will cover 5 things that you should look for when on the hunt for the housing finance loan for your homeownership plans.

1. LTV ratio.
The best home loan will come with high LTV or loan to value ratio – a financial term lenders use to express the ratio of a loan to the value of an asset purchased. Most lenders will provide up to 0% of the property’s value as the loan amount, depending on the loan slab you fall into. A higher LTV means you have to arrange a lower down payment ensuring you become a homeowner at the least possible cost out of your pocket.

2. Longer tenures.
The longer the tenure, the easier it is to repay a loan. This is because when you opt for a longer loan tenure, you spread out the repayment over more months resulting in lower EMI amounts. Sure, longer tenures also mean more interest payable but you can always cut short the tenure to reduce the total interest paid by making the prepayment as and when you are in a financial position to do so.


3. Lower charges.
Besides for the interest rate, there are a number of expenses that accompany a home loan. For instance, when you apply for the loan, you’ll have to pay a processing fee which could be as much as 2% of the total loan amount. So if your loan is of 20 lakhs, the processing fee is around 40K. Other charges include prepayment charges, document handling charges, stamp duty, late payment charges, etc. Remember to compare all the charges carefully before selecting a lender.

4. Value-added services.
Some lenders will offer you expert legal and technical counseling to help you make the right home buying decision. This will be very useful considering that taking a home loan is big-ticket debt and you’ll any and all the help you can get to ensure you make an informed decision.

5. The best home loan comes with multiple repayment options.
Another vital factor you need to look for is the number of repayment options being made available to you. The more options you have, the easier it will be to choose a plan that suits your financial needs and requirements. Most lenders offer at least 5 different repayment plans.

Look for a loan that provides you all above factors at the least interest rate; the one that does is the best home loan for your needs. We hope this article has been helpful, good luck and all the best.