Important Steps to Consider When Applying For a Home Loan

A home loan can help buyers with immediate funds to purchase their dream homes, which can be paid over a long tenure at an affordable rate of interest. This adds to buyer’s convenience and reduces the stress of amassing the total cost of the property at the time of purchase.

When planning to buy a new property through a home loan, getting the best deal can save homeowners lots of money and stress in the long run. Here are a few important steps to ensure one get the best home loans in India.

 

Step 1: Understanding the Costs Involved

After deciding on the house one wishes to purchase, buyers need to evaluate how much the house would cost inclusive of all the additional overhead charges. Consider the overheads such as agency fees, registration, legal fees, and stamp duty and more, which augment the price of the house considerably.

 

The borrower also needs to calculate the amount they can pay via savings or liquidated assets to buy the house. To get the exact amount for which a home loan would be required. One should always consider a buffer amount in case the expenses exceed the expectations when closing the deal.

 

Step 2: Shop around

To get the best home loan options that suit one’s needs, borrowers need to scan the market for all available home loans and compare the same. Considering parameters such as home loan eligibility, interest rates, expected EMIs, pre-closure fees, repayment options, tenure, and more to compare the financial institutions in question, before deciding on the best home loan.

One can search online to find best home loan rates in India, offered by reputable financial institutions, to avail the home loan scheme that suits applicant’s needs best.

Step 3: Negotiate Terms

Do not grab the first best offer quoted by a financial institute; evaluate the type of home loan interest rates, floating or fixed, being offered. Choose a practically attainable loan repayment tenure and EMI.

Step 4: Read the Fine Print

Even though reputable banks take many efforts to inform borrowers regarding Home Loan India details and the terms associated; borrowers need to take time and read through the loan agreement to understand the effects. Some of the important points in an agreement applicant’s must evaluate are,

 

Processing Charges

Maximum loan quantum.

Pre-payment charges

Pre-closure fees.

Penal interest rates.

Terms and conditions.

Repercussions of missing monthly installments.

Late payment charges.

Loan default penalty.

One should also enquire about any currency switch charges (if applicable).

Banks offer consultation services at a nominal fee, which can help one keep track of all overhead charges and gauge home loan eligibility. Applicants needs to submit the required documents which are namely,

Salary statements of last three months along with bank statements.

Identity proof (Copy of PAN card), proof of address, IT returns etc.

When opting for a home loan one must consider the overheads until the home loan is totally paid off, hence opting for a monthly EMI that can be repaid without too much stress.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/important-steps-consider-when-applying-home-loan-1544435.html?%5D

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Author: homeloan

Use the interactive Home Loan EMI calculator to calculate your home loan EMI. Get all details on interest payable and tenure using the home loan calculator.

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