Buying a house is a great investment – either of staying for self or for investment purpose. There is a lot of thought that goes in the mind of a prospective buyer when it comes to taking a decision as big as buying a house. It’s important to have a few facts clear in the mind while planning for a home loan, to ensure a smooth process and a happy decision made at the end of it.Home loan services in Mumbai
Here are 5 basic tips to keep in mind when buying a home:
Know you loan eligibility
The first and foremost step is to know one’s eligibility when they apply for a home loan. Different companies and banks have their eligibility calculators up on their website for one to be able to ascertain their eligibility for the loan. It is determined by various factors such as employment status, income, loan tenure etc. it also assists a buyer in being able to apply for a home loan, go through the entire process and even complete the application process.
Check your credit score
It doesn’t take too long to access/ check your credit score on CIBIL these days. One needs to have a score of above 750 to be able to avail an attractive rate of interest on their home loan. A low score in CIBIL can also lead to rejection of applications for home loans or might attract a high rate of interest. CIBIL data indicates that 80-82% of the approved home loans are given to those with a credit rating of over 750.
Chose your lender
This is an imperative step when one needs to choose who to take the loan from. You need to compare the rate of interest being offered by various banks/ lenders to be able to decide. More factors such as professionals to guide you through the process and reviews of the bank/ institution become an important part of this decision-making process.Home loan services in Mumbai
Additional charges to be kept in mind
The processing fee is one of the charges that varies from each bank/ Companies to the other. This is a fee deducted by the bank at the time of processing the loan. The borrower also needs to bear in mind the process for foreclosures and the terms and conditions related to the settlement of the outstanding amount etc while selecting the lender. There is legal fee also associated at the time of disbursal of the loan which needs to be factored in while applying for the same.
Read the fine print of the agreement carefully.
It is important for a borrower to know all the terms and conditions mentioned in the loan agreement before they sign the dotted line. It is crucial that one understands these terms very well in advance, to avoid any disparity anytime later, as this is a long term commitment.
A home loan is one of the big decision one takes in life, and hence it is advised to be careful and alert while taking this decision.