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WHAT CONSIDERATIONS ARE ESSENTIAL BEFORE APPLYING A HOME LOAN

Posted on Monday May 13th, 2019

Own home is dream of each and every person and everyone intends to fulfill the same as it is considered as a temple. Everybody save their hard earned money and invest to purchase their own house. The prices of the properties are increasing day by day due to urbanization and to support everyone’s dream, many banks and NBFCs have come up with a provision of home loan. There are lots of facts that are considered before you apply for a home loan. You have to carefully evaluate all the necessary aspects before opting for a home loan. ShubhBank has come up with guidance that what considerations are essential before Applying a Home Loan.

1. ANALYSE AND COMPARE ALL THE LENDERS: Many lenders such as bank, NBFC’s and other financial institutes are extending their hand to borrowers for providing them a home loan. So every individual should carefully evaluate the deals offered by various lenders and should not make any hasty decision when it comes to apply for loan. You should choose the deal that is best for you. Every borrower should conduct the survey of the lenders and go through all the necessary information and analyze all the benefits and cost of the deal to have a maximum rate of returns should be opted.

2. ELIGIBILITY CRITERIA: Before opting for a home loan, you have to check the loan eligibility. You can check the criteria online available on the website of the lender. If you fall under the eligibility criteria, then the chances get higher to get your loan sanctioned.

3. READ THE TERMS AND CONDITIONS CAREFULLY: The borrower should be aware of his/her budget and should not fall in a trap off hidden charges. Most of the terms, you ends up paying more than it is supposed to be paid. So you should ensure to read all the terms and conditions before applying a loan. It is highly advisable that you should raise the query regarding any of the terms and get the right solution to avoid any consequences.

4. KNOW YOUR HOME LOAN BETTER: Anyone who is having good credit score can easily apply for the loan and chances are higher to get your loan approved. Before Applying For any Loan you should keep a check on credit rating and can improvise the score by paying off the dues of credit card bills, monthly EMIs etc. The interest rate should be chosen in a manner that can be easy on your pocket.

5. RATE OF INTEREST: Home loan can be offered on fixed rate and floating rate. The fixed rate can be higher but is relatively safer than floating rates. The floating rates of interest can be changed anytime according to RBI mandates and government policies. The floating rates are lucrative and attractive for customers but involve a huge risk. You should choose the type of home loan that can be easily affordable to the budget.

6. LOAN TENURE: The tenure of loan and monthly installments are interrelated with each other. The more will be the tenure of loan, small will be the monthly installment amount and vice versa. You should carefully assess the repayment capability and then choose the tenure of loan.