Finding a perfect home is important whether you get a house for stay or for investment purposes and so is finding a perfect home loan essential making that desire come true. Since a mortgage will be your long-term financial commitment, finding the perfect lender becomes equally important and hence the following house loan tips can help you to acquire a loan that is merely right for you.
Housing Loan Tips
Make Good Research
You must therefore make a good research on the existing housing loan deals matching your requirement (of higher mortgage loan eligibility, lowest home loan interest rates, lowest mortgage loan processing fees, etc.), mortgage loan products (fixed rate, overdraft, floating rate, etc.) before you apply with any lender.
2. Plan Your Budget, Plan Your OCR
Down payments are essential in a home purchase. You should save enough to make your down payments to the builder/reseller & make arrangements on your own contribution (OCR) amount for purchasing a house. The OCR contribution differs with the price tag on your house. Depending on RBI guidelines the maximum funding allowable on the property is up-to 90%, therefore you need to plan your cover the remaining 10% of your OCR. Use your savings or obtain a mortgage or instant unsecured loan if you are falling short of OCR.
3. Track Your CIBIL Score
A lender pulls your CIBIL report whenever you apply for a home finance loan to determine your credit worthiness. When it comes to home loans, a good credit score will earn you the best rate. With a CIBIL score of 750 or more, you can qualify for reduced interest rates on house loans and have a higher likelihood of loan approvals. Therefore, it is imperative to maintain your credit history and pay your bills, charge cards, etc. on time to avoid your CIBIL scores from diminishing, before you obtain a house loan. Unhealthy CIBIL scores do more than rob you of the best deal; they also void your home loanapplicaion.
4. Know Your Eligibility
Identify the amount that you can afford to pay before you apply for a home loan. Calculate what EMI payment amount is affordable for you that you can afford. You can greatly benefit from a mortgage calculator. You can find the calculators online.
5. Keep Your Documents Ready
Prepare the required documents in advance of applying for a housing loan. It will expedite the loan processing. A lender will be able to approve your loan once KYC, financial and property papers are submitted.
6. Compare and Evaluate The Offers
You must compare, evaluate and choose among the many home finance loan offers of the lenders that best suits your requirement. Don’t merely choose a lender Bank/NBFC/HFC since it is offering lower processing cost or a lowest interest rate for home loan. There are other factors which will make your property loan expensive for you, like the loan repayment tenure, LTV funding norms, loan terms, foreclosure charges & conditions, other costs involved like legal, technical, administrative, etc. So don’t get fooled, and know all the expenses linked to availing a home loan before you decide to apply for a axis bank home loan.
7. Apply For A Pre-Sanction MORTGAGE LOAN
Prior to moving forward with the purchase, get pre-approved for a home loan. By knowing your eligibility, you are able to plan your purchase accordingly, so you won’t have to be concerned to arrange for those shortfalls of funds if you go and purchase an over budgeted property.
8. Carefully Read The Loan Agreements
Make sure you go through the complete loan agreements before signing it. It may be tedious and exhaustive to go through long pages of loan agreement but it’s important you know the bank clauses and conditions and conditions regarding mortgage loan charges, instalments, rate change, notifications, hidden costs, etc. which if overlooked might cost you later.
9. Maintain Written Communications
Avoid making only verbal communications with the lenders. It is crucial you have a written proof of the verbal commitments & offers provided by the lending company, because verbal commitments occasionally may well not be honored by lenders.
10. Choose The Correct Home Loan Product
Choose the home loan product which is best well suited for you. Wisely choose among the merchandise (fixed rate home loan, smart home loan, etc.) & repayment tenures that best suits your requirement. The tenure and EMI’s are inversely related. The bigger the tenure the low the EMI’s & vice-a-versa, but remember the longer the tenure the higher is the interest you pay to the bank.