Buying a Home Loan? Consider These Factors

It is the nurtured dream of many people to buy a home. With Home Loan available at the buyer’s advantage, buying a home is no longer a taxing affair. But it is indeed a big decision! Property prices have spiraled, so is the availability of multiple Home Loan options.

If you too are all set to Buy a Home Loan, it is advised to take a look on following important factors before you seal the deal:

1. Take into consideration the age of the property you are going to buy as well as the location. Not all locations are approved by banks and likewise, the older the age of the property in question, lesser are the chances of a Home Loan approval.

2. Conduct a thorough research of properties in the market in your desired location. Ensure that the location you choose is on the list of your chosen lender. Compare lenders so that you get not only the best Home Loan but also a good lender.

3. Do not go by market prices for a particular property. It will be wise on your part to know the valuation of the home determined by the bank before signing an agreement.

4. How much Home Loan should you avail so that you can repay it without financial worries? Know your Home Loan eligibility so that you know your loan repaying capacity.

5. Affordable housing has become a reality today given the low-interest rates offered by lenders. Check and compare interest rates offered by different banks. The lower, the better it is to your pocket!

6. Know the loan to value (LTV) ratio. Banks do not provide 100 percent loan. Typically banks offer up to 75–90 percent of the property price. The rest of the amount has to be borne by the buyer as down payment.

7. Ensure that you have enough money to pay the seller as down payment, as banks generally offer 75–90% percent of the property’s market price.

8. Do not ignore your Credit Card dues. Before approving a loan, lenders may review your repayment and debt capacity pertaining to your Credit Card bills.

9. Check your credit score before applying for a Home Loan. Lower your credit score, greater are the chances of rejection of Home Loan application. Ideally, you should have minimum 750 credit score or more.

Also Read: Is Your Home Loan Application Rejected? These Could be the Possible Reasons

10. Keep all documents ready. Make a checklist of the required documents from your chosen lender.

11. If you belong to the middle-income group, you may apply for the Pradhan Mantri Awas Yojana to avail interest rate subsidy of 3–4 percent.

Aldo Read: Have You Booked Your Home Under Pradhan Mantri Awas Yojana Yet?

12. Which loan type should you choose? Banks offer two types of Home Loans — fixed and floating. While interest rate doesn’t change with market fluctuations for fixed type, it varies according to the market conditions for floating type.

13. Choose tenure of repayment carefully. Longer the tenure, greater is the interest amount you end up paying. Shorter tenures come with lower rates of interest.

14. Be ready to read the fine print in detail. Do not miss any clause or leave any scope for grievance later.

Which lender should you choose? Taking an informed buying decision is what matters. Visit a one-stop trusted online financial services marketplace mymoneymantra, that hosts all leading banks and their products. Using their easy-to-use tools you can compare home loans offered by different banks in terms of benefits offered, features, interest rate, and other factors with a few clicks. Checking your eligibility and then applying happens in seconds. Call our Mortgage Specialists toll-free at 1800 103 4004 for more information.