Now that your plans look like they’re on the road to materializing, it’s time to finally launch Project Dream Home!
It’s a smart move to avail of a home loan at an attractive rate of interest that can be repaid across a longer tenure so that you don’t burden yourself or your family. You can approach reputed banks or housing finance companies to get the best possible terms based on your needs and preferences.
With so many options available in the market today, it is a challenge to zero in on the perfect product. In fact, many experts in the field would even caution you not to expect such a thing as “perfection.”
This is because every loan is unique just like each customer, and it fulfills a variety of conditions that may differ in every case.
What Is The Right Home Loan For You?
The cornerstone of any assessment of a product, financial or otherwise, is research, and more research. Study the market in detail, stay abreast of the latest products, talk to experts and trusted sources who have gone through the experience successfully.
Armed with this information, you are in a better position to understand financial jargon, negotiate with lenders, understand terms and conditions and evaluate the home loan that best aligns with your own individual set of circumstances.
You need to take stock and conduct a reality check on your own finances. This helps you to judge whether you can comfortably manage your finances during the loan tenure. You must plan for emergencies, future events that will need to be financed and make a realistic estimate of your present needs and those of your family or dependents. You should be able to make the EMI payments on schedule without undue stress and complete the repayment on the stipulated date.
How To Get The Perfect Home Loan
Taking a loan is a major financial commitment, and it has to be approached in a systematic manner, with meticulous planning. As a first step, assess your own financial status, and whether this is a good time to sign up for such a commitment.
Analyze and make a study of exactly what kind of loan you need, as there are several different home loan options available with different lenders and housing finance companies. Choose a reputed, well-established lender and read online reviews for customer service and communication skills. Today most professionally managed lenders offer robust online services to manage your account, get updates and make payments.
Check your credit score and ensure that is a healthy one. If the scores are lower, you may not get immediate approval, or you may have to agree to more stringent terms. These may include higher interest rates, short tenures or larger down payment.
Compare home loan interest rates and processing fees across different lenders, and plan your income and expenses well across the time your home loan would be running. Try to make as large a down payment as possible so that your burden is reduced.
Take some time to understand whether a fixed or floating rate works for you. Some banks or housing finance companies may offer an initial fixed rate and follow it up with a floating rate for the rest of the loan term.
Judge whether you want a longer or shorter tenure. Both have their own pros and cons. If you want better terms, select a co-applicant for the loan so that your eligibility goes through more smoothly, and you can avail of a larger loan amount. The LTV (loan to value) ratio will tell you how much of loan you will get based on the property value.
Before you talk to your chosen lender, get all your paperwork in order. Make sure that your property documents are perfectly valid and you are in compliance with all the relevant regulations.
