Opt for Housing Loan today, Follow these tips for ease of access

Building a home is a once-in-a-lifetime opportunity for most of us. A big chunk of your money gets directed into its purchase. When you opt for a housing loan, it is advisable that you sit down and put some thought into the entire home loan process. With several competitors out in the market, you may get confused into choosing the one that has the most potential to meet your needs. Here are 5 simple and important tips to mind while you are buying your dream house:

1. Research well: This is the first and foremost step towards a proper housing loan. Take out some time and research on the interest rates provided by various trusted financial companies. This research must compulsorily be done by you. This will get you acquainted with important facts and reduce chances of being deceived, if at all. Since you are the one who is buying a loan, very naturally, you need to be aware of most of the process that goes into its materialisation. Moreover, the home loan eligibility calculator provided by such companies on their websites is a very handy tool at your disposal.

1. Parking your surplus money: This is an interesting feature to avail a cut on your housing loan interest rates offered by certain companies. You can park your surplus money into the home loan account and get a reduction on the interest. Companies provide you with the opportunity to withdraw this amount from your account as per your wish without any prior notice and without any extra fee for withdrawal. You can keep an eye on your expenses during the loan tenure and put your savings into the home loan account or "park" it. So, it is advisable to check out the various parking facilities offered while you are hunting for your best-suited housing loan.
2. Floating rates vs fixed rates: Floating rates refer to the interest rates that vary with market conditions whereas fixed rates are those that remain static. It is generally seen that home loan with floating rates are more beneficial in the long run than fixed rate ones. However, if you are the kind of person who prefers a fixed monthly repayment budget without any fluctuation hassles, the fixed rates type of loan is for you. Experts are of the opinion that fixed rates can be a safe bet if the market interest rates are conducive to rise in the near future. Ultimately, you can do a little study in this regard about the prevailing market conditions and choose your home loan plan wisely.
3. Aim to foreclose: Loan foreclosure or loan preclosure means repaying the whole or a part of the remaining loan in one single payment rather than through multiple installments. During the home loan tenure, try to save as much as you can and utilise that amount in foreclosing the loan. In this way, you are freed of the housing loan burden way sooner that it was meant to be. Rather than indulging yourself in an exotic holiday, if you put that money into the home loan repayment process, it will be profitable for you in the long run. Some websites have home loan eligibility calculators for this purpose – to help you calculate the new EMI if you opt for a preclosure.
4. Increase your down payment: It is beneficial to pay a larger chunk of down payment. The higher the down payment the lesser will be the interest rate on your home loan.

Finally, read through all the procedures and processing fees of the various financial institutions and decide the possible option for you. Just put some time and effort and go for the best home loan out there!

I'm a financial advisor with an experience of more than 5 years in a href=https://www.indiabullshomeloans.com/Housing Finance Companies. I have worked for topmost financial firms in India.