Many of us work out financially for getting a dream home where you and your family can relax with ease, with no stress of paying rent every month, the horror of the landlord increasing the rent and also, the fear of shifting from one place to another every eleven months.
Imagine you have reached a point, where you think this is the right time to buy a dream house. You go property hunting, explore your options and finally you like a property, but the property is a bit out of your range. You are stuck with this property in your mind and want it desperately, what would you do? It’s simple, go for a home loan!
A home loan provides you with a supplement while buying a house. In today’s real estate market, the buyer is king as he has a lot of options in the market in terms of properties as well as home loans. if you are property hunting, there will be banks who will run after you to provide home loans. The developer himself will give you various loan options so that you buy the property with ease.
But is it that easy to avail a loan? What all things you should consider before choosing a loan or a lender? Will this procedure dig a hole in your pocket in future?
Let’s understand the major factors to look after while considering a home loan,
The down payment
This is the most important factor which can influence your home loan eligibility. There are many schemes going on in the market where you just need to pay 5% of the property cost and the rest 95% can be availed by loan, but what the buyer does not know is that the higher the loan amount the higher interest you will pay. For example, you look for a property worth 1 crore and make a down payment of 10 lakhs and the rest amount is obtained via loan and the tenure is fixed to 20 years at home loan interest rate of 10%. This means you will be paying almost 1 crore 80 lakhs on interest for the property. It is always suggested before taking a home loan, make sure you have saved enough for the down payment so that you can take a minimum loan and get rid of it in short span of time.
Your eligibility criteria
Getting a home loan is not easy. The lender will calculate your loan eligibility by determining a lot of factors like your incomes, expenses, existing loans, cibil report and so on. There are lenders who can provide you up to 95% loan on the property rate, provided your eligibility is great.
Try clearing all your existing loans, outstanding credit card bills so that you are eligible for maximum loan amount. Check your cibil score and if you find any mistakes on your report do report it to the bureau and try rectifying it as soon as possible. If you raise a dispute with the credit bureau company it may take a lot of time. Try showing all your incomes for getting into the maximum slab of loan.
The right lender
There is a lot of competition in the market within the lenders. There will be some lenders who will give you mouthwatering offers on home loans, but do your research and try getting a loan from a lender who has good schemes for a long run. As home loan will be around you for a long time, you will have to choose a lender wisely. There are number of websites which help you compare home loans by an easy click.
Everything associated with a home loan comes down to this. An agreement is a written docket provided by the lender of whatever is committed to you in association to the loan. In excitement, many of us just sign the agreement without giving it a look, which then comes haunting us in the long run. Always ask for a copy of the agreement and take a day or two just to understand the terms mentioned, so that you don’t face any problems in the future.
Getting a loan is no easy task. If you are observant on such criteria, you give yourself a fighting chance for getting a speedy approval and make a smart step towards a secure financial future.
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