Selecting a home loan from the plethora of options available in the market, can be a daunting task. We offer some tips, to simplify the process for home buyers.
Points to consider, while looking for the best home loan product:
- Flexibility in switching from floating to fixed rate and vice-versa.
- Tenure of the loan and whether it is as per applicant’s requirement.
- No prepayment penalty.
- Minimum loan associated charges and zero processing fees.
- Quick processing time.
Things to keep in mind before applying for a home loan
Our finance experts at Trimurty suggest some important factors points to keep in mind, before applying for a home on loan:
- Maintain a good credit score, by repaying all existing loans on time.
- Maintaining enough money in the bank account and a stable income stream, for getting a loan easily.
- Loans taken towards or after retirement or those taken very early on in your career, take longer to process than loans taken between the ages of 30-50 years. So, buy your home at an early age.
Dos and don’ts for servicing a home loan:
- Provide all credit-related information upfront and on a transparent basis.
- Ensure that the EMIs can be serviced comfortably on a monthly basis.
- Set up a regular payment mode to ensure repayment on the scheduled due date.
- Keep reviewing the repayment of loans on a periodic basis.
Often, builders enter into tie-ups with banks, for supporting their customers to get loans easily. You should contact such banks/institutions and check if you can save money through lower interest rates, or by paying lower loan-associated charges. Usually, such banks offer quick due diligence and low interest rates, for pre-approved projects. For special offer home loans, read the fine print on the loan agreement thoroughly and evaluate the loan with normal loan products.
