Things to consider before taking the loan

If anything goes parallel with home loan then it is marriage. Both involve huge finances, emotions and a long time commitment. Don’t let this push your thought train to frenzy.  Just like the marriage with an ideal partner can turn out to be the best decision, similarly investing in a property can. From the various lending institutes sprawled in the nook and corner of the city, borrowers choose different institute depending on the interest rates offered, loan tenure and the terms and conditions. It is not necessary that the same loan is applicable for all borrowers, depending on the eligibility of the borrower and the type of loan he or she selects, the lender they choose it varies.

Before applying for home loan, consider the following:

Are you in a situation for long time commitment?

Taking a loan is not the only thing that matters, repaying the monthly EMIs are most important. It calls for a long time, at least a decade. Evaluate your current source of income and its efficiency in fulfilling the EMI commitment. Plan your budget accordingly and start saving immediately.

Will the loan commitment affect other responsibilities?

Investing in a property is important but it’s a part of the dream. There are other responsibilities which is more important like education of your child, health of your family, etc. these are large and important expenses. Take the decision of going for a long tenure after considering your duties towards your family.

Is the loan offer luring?

There are various loan offers available in the market which appears lucrative to the potential customers. The loan market is a competitive market and various institutes attract customers with various offers to stand out in the market. The prudent borrowers will dive deeper into the surface and would not be misguided by the enticing figures, which appears too good to be true. Grab the offer only after you are sure about the associated charges and caveats.

Did you researched and taken experts advice?

Research about the loan can reveal facts, which will help you take a confident decision by negotiating better. In this competitive and ever changing time, it is better to view things from refreshed prospective. More updated your research, more it will be helpful for you. In this digital market era every information, expert advice and reviews from existing customers is available in your fingertips. This will help you frame your process.

The organizations offer you the home loan for buying properties under construction, a ready flat from the listed builder or a plot of land. Loan is even given for extension of present construction or renovating a property. With the basic eligibility criteria, your credit score is a deciding factor for loan sanction, amount of loan and the rate of interest. Try to maintain a good score. When going with the home loan, try to clear all pending debts so the loan burden does not pull you down. Investing in buying property calls for a good deal amount of financial attention, so it’s better to clear this debt first, before going for some other loan. EMI payment will take away a major portion of your salary and saving so it’s better to clear this debt first for hassle-free loan tenure.