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| HOME LOAN EMI CALCULATOR |
A home loan is potentially one of the biggest decisions of your lifetime. And to ensure you come out of this decision smiling and with a home to your name, it’s extremely important you get the preparation right before even applying for the loan. Like they say, what begins well ends well? Keeping this in mind, the following article will highlight some of the things you should see to before you apply for a housing loan to ensure you enjoy a smooth and hassle-free borrowing experience.
1. Your finances.
Before you apply for a home loan, you need to have an exact idea of your finances. You need to figure out the budget of your home, how much of the purchase amount you can cover with a down payment, the loan you need and the amount you are eligible for. Begin with your eligibility so you can then decide the budget for the purchase and the amount you’ll need to foot out of your own pocket. Most lenders have an eligibility calculator that you can use for that should give you a rough but better idea of your eligibility.
2. Your credit score.
Credit ratings are very important. A good score will ensure a smooth application process and also bring quick approvals. A poor score, on the other hand, could hinder your plans or cause you to settle for a poor loan offering (the better loans require higher scores). Generally, CIBIL is one of the more recognized credit rating companies in India for a home loan. A CIBIL score above 700 is considered as good, anything below that, not so good. So get your credit score, look for any errors in the report and see if you can improve the score before applying.
3. The repayment schedule of the home loan.
It’s important you know what your repayment schedule would be like before you apply. This way, you can see if you can handle can handle the applicable EMIs or if you’ll need to look at a smaller amount. Further, having the entire repayment schedule before you will help create better financial plans to cover the EMIs. Using an EMI Calculator will help you get the entire repayment schedule tabularized and neatly presented for you.
4. Upfront costs.
Besides the down payments, there are a number of upfront costs you need to account for. They include the processing fee, stamp duty, and registration fees. If you are going to take an insurance policy as a safety net, the premium is another cost you would have to consider.
5. Terms and conditions.
Before you sign along the dotted line and commit to the decision, you need to know all the terms and conditions. You will have to set aside time and go through the fine print thoroughly – it won’t make for leisurely reading but it’s a must. If you find any points that are above your understanding or that require clarity, do approach the lender and have your doubts cleared before finalizing. It’s extremely important you go into a home fully aware and informed about what you are getting into.
These were some of the more important things you need to be well aware of before you take a home loan. We hope these pointers provide you a smooth borrowing experience and help you come out the decision as a proud homeowner and with an immense sense of accomplishment.
Good luck and all the best!1. Your finances.
Before you apply for a home loan, you need to have an exact idea of your finances. You need to figure out the budget of your home, how much of the purchase amount you can cover with a down payment, the loan you need and the amount you are eligible for. Begin with your eligibility so you can then decide the budget for the purchase and the amount you’ll need to foot out of your own pocket. Most lenders have an eligibility calculator that you can use for that should give you a rough but better idea of your eligibility.
2. Your credit score.
Credit ratings are very important. A good score will ensure a smooth application process and also bring quick approvals. A poor score, on the other hand, could hinder your plans or cause you to settle for a poor loan offering (the better loans require higher scores). Generally, CIBIL is one of the more recognized credit rating companies in India for a home loan. A CIBIL score above 700 is considered as good, anything below that, not so good. So get your credit score, look for any errors in the report and see if you can improve the score before applying.
3. The repayment schedule of the home loan.
It’s important you know what your repayment schedule would be like before you apply. This way, you can see if you can handle can handle the applicable EMIs or if you’ll need to look at a smaller amount. Further, having the entire repayment schedule before you will help create better financial plans to cover the EMIs. Using an EMI Calculator will help you get the entire repayment schedule tabularized and neatly presented for you.
4. Upfront costs.
Besides the down payments, there are a number of upfront costs you need to account for. They include the processing fee, stamp duty, and registration fees. If you are going to take an insurance policy as a safety net, the premium is another cost you would have to consider.
5. Terms and conditions.
Before you sign along the dotted line and commit to the decision, you need to know all the terms and conditions. You will have to set aside time and go through the fine print thoroughly – it won’t make for leisurely reading but it’s a must. If you find any points that are above your understanding or that require clarity, do approach the lender and have your doubts cleared before finalizing. It’s extremely important you go into a home fully aware and informed about what you are getting into.
These were some of the more important things you need to be well aware of before you take a home loan. We hope these pointers provide you a smooth borrowing experience and help you come out the decision as a proud homeowner and with an immense sense of accomplishment.
