Buying a home is one of the biggest financial decisions most people make in their life. Those who want to buy a home of their own prefer to opt for a home loan, but availing a home loan is not as easy as it is said. Many people are not aware of all the formalities that one needs to fulfill to get home loan approval. Individuals who want to avail a home loan for the first time should stay aware of a lot of things such as interest rate, credit score, several fees related to the home loan, documentation and much more. Here are some important things you should know before signing on the dotted line.
● Research on Loan Options- With easy accessibility of information on the internet, make an effort to do extensive research on the options available in the market before applying for a home loan. Your research should also include these three crucial factors that formulate a loan, namely, down payment, EMIs, and repayment tenure.
● Spend Cautiously- A factor that immediately follows the affordability clause is that of monthly expenditure. Once you have a home loan to repay, it is preferable and advisable to follow a strict budget to meet your equated monthly instalments.
● Negotiate the Rate- Which ever option you choose, do not forget that you can negotiate on the interest rate. Though the bank would always have an upper-hand, you can haggle as well, especially if you are an old customer with a long relationship with the bank.
● Know Foreclosure Norms- Keeping a keen eye on the changing RBI norms may be advantageous to you on many levels. Foreclosing your home loan by repaying the outstanding amount in less than the committed time saves you from paying any added expenses. The sooner your loan is paid for, the higher your credit score.
●Home Loan Tenure- Every individual who desires to avail a home loan should decide home loan tenure before availing a home loan. Your home loan EMIs directly depend on your home loan tenure. Banks tend to prefer home loan applicants with shorter repayment period.
Loan Kumar is such a financial institution that helps us in availing various types of loans such as home loans, personal loans, business loans, loans against property in Delhi NCR. It is committed towards its client to provide them with the best service.