Directory Image
This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Privacy Policy.

15 Tips for Best Home Loan Experience

Author: Poonam Dambare
by Poonam Dambare
Posted: Nov 03, 2018

15 Tips for Best Home Loan Experience

Finding a Perfect home is important, to give your family a sufficient free space and needed freedom to stay happy within. But, don’t you think, finding a perfect home loan is equally important, while you opt for the home loan to buy a home?

There are more than 50 lenders, which offer the home loan for the purpose of buying a home of your own, but are they all equally good? Are they all equally trusted and deserving for a home loan? In fact, the home loan is a long-term commitment, and thus it requires a deep research and well-made choice of the lender, you should go with, for your home loan. To deliver you the best home loan experience, here are some tips:

Start the process by saving for down payment

Start the process much before availing home loan by saving for down payment. Saving enough for your down payment of the home allows you with the flexibility in opting for the less loan amount, and thus as a result bringing down your EMIs and helping you enjoy a better life, by paying less each month. You must remember that the Down Payment for a home loan varies from 15% to 20% depending upon the total value of the house.

Even, there are certain home loans, which allow zero down payment facility, but always remember that there are certain restrictions and hidden aspects, which you must research before opting for such a home loan. The down payment is make-or-break in any home loan, and the total amount, you pay finally, at your home loan, is decided by the down payment you initially paid at your home loan. Always keep a sufficient fund with you as a down payment, as who knows the banks opt for the sanctioning of a lesser amount at your home loans, and thus in such scenario, you may risk losing the selected property. Thus, the better idea will be to collect more than what is needed as a down payment amount with you thus, offering you with enough flexibility, while dealing with the banks for your home loan.

Research for the Home Loan Providers

In search of a Best Home Provider, there is only one rule, which applies; Research, Research, and more Research! As already told, there are more than 50 lenders in the country, which function in the home loans, and making a selection from among them is a bit tedious task to do. The more you research for your home loan providers, the more are the chances that you end up selecting the best home loan provider for your home loan financing. To begin with the process, you can write down the names of some of the best home loan providers and can list down their offerings. You can do an online research on their home loan policy and can check the customer satisfaction level. Make sure that you end up with some of the best names for your home loan needs, which contain at least 5 names, thus offering you better deals and more importantly better customer satisfaction.

Check your Credit Score

Before applying for any home loan, you should check your credit score. You must always remember that a good credit score is always helpful in getting a good deal from the home loan provider. With the better credit score, you are showing your lenders, with the credit trustworthiness, and thus imbibing a sense of confidence among them that their loan will not go default.

What you can do is to prepare yourself much before applying for a home loan; get yourself a copy of your credit score report from CIBIL and analyze it. In case, you find some errors, thus affecting your score, raise an issue with the CBIL and get it corrected. Make sure that your Credit record highlights the credit history, error-free. Always, try to keep the score above 750, as this score may allow you in getting a better rate of interest on your home loan. The lesser your credit score goes, the higher rate of interest will be charged at your home loan, and if the score goes too low, the chances are that your application for a home loan might get rejected.

Start collecting all your Papers

Start the process, by slowly and intelligently collecting all papers needed for the successful application of a home loan. By making sure that all your financial documents are in place, you are offering yourself a chance for the speedy home loan processing and also in the process, minimizing the chances of the home loan applications getting rejected. Get yourself with the salary slips, all legal property papers, and ITRs, which may take some days to manage. Consult the bank, for the list of papers needed and start accumulating them.

Utilize the features of Loan Calculator

With the advent of technology, the customers are equipped with several online tools, which can make your task easier and convenient. Utilize the home loan calculator, which are available at most websites of home loan providers in India, thus helping you in making a better calculation of your EMIs and all other loan figures. Use the Home Loan Calculator of any bank, to calculate how much you should opt for a home loan, what EMI you will be incurred at, and what deal suits you better.

Compare Various Offers and Schemes on Paper

Have you made the list of all well-known banks and lenders in India for your home loan needs? Compare their various offers and schemes, by creating a chart on paper and compare those offers and deals as offered to you by them. Also, remember that you can negotiate on various offers and deals as offered by them, and ask for the better deals if you aren’t satisfied over something. Make down a list of around 5 best-suited home loan providers, which are ready to give you considerably better deals and negotiate with them for an even a more better deal.

Also, make sure that your comparison is merely not based on the rate of interest, as there are several other factors which play decisive roles in the overall satisfaction level in a home loan.

Get a Preapproval for a Home Loan

Getting a pre approval on your home loan is an important step, which you can opt for to get an idea on how much you can borrow and what conditions. Getting a pre approval for your home loan, gives you an insight on what you need to search for a home. For a pre approval, all you need is to furnish basic details like Income, savings details, and all your investment details. Get a pre-approval for your home loan to get a fair estimate on how to step ahead, while in search for your home.

Understand the Loan Agreement

The loan agreement contains all details and terms and conditions, which you will be abiding by in your home loan. Read the documents very carefully. It is a normal practice, hat we don’t go through the papers, carefully, and believe in ‘Word of Mouth’, but stay alert, as aspects and terms and conditions written on papers are the only one, which we should believe in. Go through the papers carefully, and even if it takes time to do so, do it without failing. You can also, adopt the services of a lawyer to make sure that all terms and conditions are right at their place. Never rush in to close the deal, by signing off on the papers.

Choose Home Loan Tenure carefully

The choice of the home loan tenure is one important aspect, which is crucial in how things go in next 10-15 years. The home loan tenure is the deciding factor, as it decides the EMIs, which you need to pay each month. Make sure that the home loan tenure, you go for, doesn’t disturb your other liabilities. Keep a fact in note that shorter home loan tenure can reduce your total loan amount to be paid, but increases EMIs, drastically and vice versa.

Get to know about Prepayment Terms and Conditions

Have you paid attention at the prepayment terms and conditions? As, the home loan is a one term liability, there may arise a situation, when you want to want to prepay your entire due home loan; so does your bank allow in doing so? Do, they charge you with prepayment penalty? Make sure that you are aware of all facts related to prepayment or foreclosure of your home loan. In most of the cases, it has been seen that a home loan featuring floating rate of interest have no prepayment charges. However, better check through your bank, for the most accurate information of prepayment conditions.

Evaluate all Hidden Costs

There are several hidden charges, which many banks levy on you for the home loan. While, these are the onetime fee, which will not bother you for long time, but ‘A single penny saved, is a single penny earned’. Make sure that you are aware of all the hidden charges; thus go through the charges, which the home loan providers in India will levy you on your home loan. Seek a clear and straightforward reply from your home loan provider.

Secure your Home Loan

A home loan protection plan is an insurance plan that ensures the smooth payment to the bank, even if the borrower passes away. This insurance plan allows the loan borrower’s family in avoiding all hassles and legal issues and at the same time ensures that the family need not vacate the house, due to the nonpayment of the home loan. This insurance plan for your home loan will never be emphasized by your bank, but you must take it very seriously and get your home loan, insured to avoid any issue in the future.

Home Inspections Professionally

Before getting a Home Loan finalized, have you made an inspection of the home, you are going to buy. In fact, you did everything right until now, when it comes to the planning and steps to get a home loan from the bank, but have you made sure that if the house is worthy to buy? Getting a Professional for the home inspection allows you in getting sure that the home you are going to buy is defect free, and there are no damages of any sort. While, you can do his at your own end, getting a professional doing this task, ensures better inspection of your home.

Check the Property Taxes

You made all calculations what it would take to buy a home. But have you taken into account, the property taxes? While, buying a home ensure that you are well aware of your tax liabilities and any rebates which you are authorized to get. Get the complete information on all the tax related detail regarding the Property. Ensure that all due taxes are paid for the property and also evaluate how much tax rebate you are liable to get. Get yourself a lawyer if you can’t figure out on your own.

Don’t mess up your credit during the loan processing

Don’t assume that, once your lender checked your credit score, the same will not be done again. It’s not uncommon for the lenders to opt for the second time check of your credit card, before loan closes. Thus, it is advised that you should do anything wrong, before your loan is processed, which may bring down your CIBIL Score. Don’t keep any credit card outstanding dues, or don’t apply for any other loan, like car loan etc, until your home is processed.

Always ensure that you get the best home loan experience while you buy a home of your own. A home loan is a long term liability and thus, makes sure that you check all details and features for the home loan, before signing off the papers.

Rate this Article
Leave a Comment
Author Thumbnail
I Agree:
Comment 
Pictures
Author: Poonam Dambare

Poonam Dambare

Member since: Aug 24, 2018
Published articles: 47

Related Articles