10 Tips On Taking Home Loans

Buying a house is a lifetime desire for everyone, but due to increasing property prices the need to buy one becomes uncertain. The real estate market is witnessing a hike in the interest rate and thus people are taking a step behind in placing their investment in property. As Alice Hoffman said, “Every problem has a solution”, there is a definite way to build your dream house through the concept called Home Loans.

How to get your home loan?

Getting a home loan needs the some basic understanding that can help in choosing a safe and secure loan process. Read on the basic guides that can assist you:

-Conducting a basic research on the latest property trends in the market will the best option before even choosing the loan agent. Consider the possible contacts that can help your give lesser rate of interest. Applying home loans in bank is also the right choice, but some banks offer higher rate of interest.

-You can save your additional funds if you are taking up a home loan in bank. This is a special scheme in banks that helps to reduce the interest rate from the principal amount. The amount can be deposited in the loan accounts which will be tallied for reducing the burden.

-Check whether you are not being charged extra on foreclosure norms. The Reserve Bank of India has announced the ban of foreclosure penalties, and thus loan agents should not include any such additional charges in the agreement.

-There are two types of interest rates; one is the floating and the other fixed. Confused on what to choose? The fixed rate has smart offers in interest rate, but there is foreclosure penalty valid when you take up fixed interest rate.

- Ensure regarding the credit score as it plays a major role in housing loan. It is a financial credibility that helps the lender to check whether you are financial sound for the repayment. You can check your credit score in the CIBIL (Credit Information Bureau India Limited)website.

-It is wise to check on the some important aspects like the loan period, free insurance from loan agents, process fee, security closure etc. After getting the amounts, it is best to discuss with the loan companies for better deals and discounts.

-Apart from taking a home loan, every buyer has to pay some amount from his earning to the agent or bank. It is good to pay the maximum amount, which will help in reducing the interest rates to be paid as much as possible.

-Looking at the EMI’s people often choose the longer tenure which looks affordable. It also has an adverse side like you end up paying more for your dream house. There are some possibilities where you will end up in paying the EMI’s earlier. Sometimes choosing longer tenure can be difficult to manage.

-Reading the terms and conditions of the loan policy will be best option before signing the documents. If there are any doubts, you can ask the loan lender to clarify it.

-Lastly, keep a track on your spending during the tenure period. Don’t spend too much as you need to repay the amount. Better spend wise and get your loans repaid on time.

Source and Image: Net