The Home Loan market is vast and it takes calculated efforts to strike a proper deal. Here are 10 tips which can assist you to choose a Home Loan that can be reasonable for you;
Prepare for the down payment
The required down payment averages to around 10% of the cost of the house. Most lenders do not give loan for down payment. Start saving early to bear the onetime expense.
Check your credit score (CIBIL score)
Having a good credit score gives you the advantage to attract the best Home Loan deal available in the market. Do not default on your ongoing EMIs and credit card bills (if any).
Keep your documents in place
You would need to submit various documents. This will include your PAN card and Aadhaar card copies, salary slips of up to 6 previous months (if you are in service) and IT related documents. Take time to keep them in place, well in advance.
Compare offers from different lending sources
Try and get Home Loan details from as many sources as possible. Make detailed enquiries. Compare and study the offers. Make a thorough research.
Compare home loan interest rates
Though interest rates do not vary much between the lending institutions, do not blindly settle for the one which offers the least because, there could be certain hidden charges applicable over and above the offered rate.
Prefer a Home Loan lender recommended by your builder
Builders offer a choice of Banks and lending institutions for Home Loans. It will be advantageous to choose a lender recommended by the builder to ensure smooth dealings between you, your lender and the builder.
Decide your loan tenure
After your home loan eligibility is calculated through the home loan eligibility calculator, it’s advisable to decide a tenure that’s not too short by which you hurt your pocket while paying your EMI.
Plan your EMI
Make sure that your EMI doesn’t affect your routine household and personal expenses. Always keep a more-than-sufficient fund in your bank account to ensure that you don’t default on your EMI payments.
Consider your lender’s proximity to your existing residence
Although most communications and dealings happen online, it is beneficial to have your lender’s main office (or branch) close to your current residence. This will help enhance your personal dealings with the lender.
Respond promptly to your lender
After you have applied for a Home Loan, it is imperative that you respond promptly to any requests for additional information from your lender. This will avoid delays in processing your loan.