Housing loan is becoming the most reliable source of funding for salaried and self-employed individuals with homeownership on the mind. When you get up to 85% to 90% of the property’s value, and 20-25 years to repay the money back with comfortable EMIs, it is surely the deal of your life. Today, top banks and finance companies are providing a home loans in India with attractive interest rates as low as 8.35% with a mere processing fee on it. Women applicant, joint co-owners are provided with higher loan eligibility and attractive interest rates. However, before you plunge into the loan lending market to get a good deal, remember these few things:
Know your loan eligibility
You can’t just apply for any random figure in your mind. There is a certain eligibility factor, based on which lenders will grant the loan. So, all you’re planning to opt for your dream home should start once you know about your maximum home loan eligibility and affordable EMIs over the course of time. You can get a good estimation by visiting aggregate sites or loan lending sites before you apply for home loans in India. These simple, yet power fool tools will help you stay prepared for your loan repayments and weed out the unwanted expenses.
Be ready with a down payment
Once you know how much you’re eligible for, and the property price, you will have to look for the down payment you can afford. Technically speaking lenders will fund around 85% to 90% of the property value, and you will have to arrange around 10% to 15% of the property value. You can try and save over a period of time. Remember, the more you make down payment, lower would be home loan interest rates, and you can make affordable EMI payments.
Check your credit score
A credit score is one of the most important parts of your loan eligibility. Therefore, it's important you meet the required score before you make an application. Go through it, and if there is any discrepancy, try to solve it and clear the records. Ideally, loan providers will give you low-interest rates and varied benefits if you have a credit score of 750 and above. There are numerous sites such as Equifax, Transunion, etc. that will let you know your credit score free of costs.
Applying when you’re young
In your younger days, you’re free from any form of the financial burden, and your credit score is clear. Secondly, you will be able to make the repayment before your retiring age, so it will place more trust in the lenders. Thus, they will easily sanction your loan with drooling interest rates, and flexible repayment options.
Make use of online calculators
When you use online calculators, you will save a lot of time and energy in doing tedious calculations. It will give you an accurate and guaranteed solution. You will come to know your interest outgo, principal amount, total costs, processing fee, and EMI. They are absolutely free of costs and you don’t even to subscribe to them. You need to enter basic information like your principal amount, loan tenure, home loan interest rate, and it will come up with the entire break-up of your repayment schedule in front of you.
These are a few things that should be on your watch list before you plan to visit online or in-person to make your home loan application!
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