Buying a home in
this skyrocketing property prices is easy and exhaustive, now you must be
thinking how an easy thing would be exhaustive, right? Let’s explain you this
in details, in this article. Purchasing a home is easy in this market of
expensive property prices owing to the various home loans available for the
potential buyers. It is exhaustive because of the long repayment tenure. Though
the long home loan tenures help you get affordable EMIs but it can raise the
interest cost you pay on the loan. So home buying can be easy and hassle free
if you plan the venture beforehand and squirrel away some amount of money from
the beginning of your career.
If you have a good
credit score, impressive bank statement and good financial profile; then you
can expect your home loan to get disbursed within a week or two once the
required documents are scrutinized & verified. With the aforesaid factors
you can expect to get maximum of 70-90% of the property value, depending on the
price slab. They can also help you to get affordable interest rates, which are
nearer to the lowest rate the concerned lender is offering.
Once your home loan
is approved, the exhaustive phase of the venture starts.It is the debt
repayment phase, because it absorbs almost 20-30 years, depending on the type
of loan you have taken. Experts advise borrowers to repay the loan amount
sooner to avoid unnecessary increase in the interest cost. There are certain
steps, which can help the borrower to repay the housing loan sooner, like:
- Avoid taking any other loans while you are in the home loan debt phase. Analyze the outlets of hemorrhage money, cut short the unnecessary expenses and try to save maximum amount, so that you can repay your loan before the tenure.
- Replace the unnecessary expenses with necessity. It’s is better to save now and repay the debt, than spend now and end up paying the extra interest cost for the long tenure.
- As soon as there is salary hike or increase in the monthly incomes, don’t forget to increase the EMI cost, this can speed up your debt repayment by reducing the number of installments.
- Save the extra EMI cost, in case the interest rates come down in case of the adjustable rate of interest.
- Invest in life insurance policies, stocks & bonds early, so that it can give you high maturity amount after certain period that can help you to repay the loan amount.
The above mentioned
few points can help you repay the housing loan quickly. Before taking the loan
make sure that your lender doesn’t penalize your repayment with certain percentage
on the balance money after the fixed lock in period.
