Tips on how to choose the right home loan to buy your dream house.

Buy your dream abode needs a lot of research about the right location, safety, pricing and most importantly how to finance it. No matter how much you save, it proves insufficient against the ever-escalating real estate rice in India. Therefore, most buyers opt for home loans from leading private finance companies and banks. However, with a lot of players floating around in the market choosing the right home loan can be a tussle task for you. In order, to avoid the hassles and make things easier for you, here are a few handy tips to make an informed decision:

The first thing is to visit the internet and check the interest rates offered by leading players in the market. Based on the interest rates, loan tenure and monthly installments you can shortlist a particular lender and talk to them personally or chatting online to know about your loan eligibility.

Loan eligibility is based on several parameters such as your age, income source, job stability, additional income source like spouse/parents income, existing debts in hand, and most importantly your credit score. After evaluating the factors like lenders will offer you loan amount with particular interest rates.

Women borrowers and senior citizens are always welcome by most of the banks and Housing finance companies. They are offering special schemes, concessions based on seasonal or festive offers for women home buyers and senior citizens. You can approach such lenders as it can save a lot of money on interest rates and other expenses like stamp duty, registration, etc.

Some lenders have tie-ups with builder projects and if you choose the property amongst these projects you're likely to get some exciting deals and offers such as one year EMI waive off, concession on interest rates, etc.

Your credit history plays an important role in your loan approval. People with low or bad credit score will find it quite difficult to get a house loan. However, by improving their score, and negotiating with the lenders they can get a home loan. Experts say it is better to keep your credit score up-to-date at least a year prior to applying for home loan. A good credit score, income source, and stable job is the key to negotiate with the lenders for low-interest rate deals.

No lender will offer you 100% funding and you will need to show some margin money at the time of loan approvals. Lenders will sanction 80-85% of the property value. Therefore, it’s important you have enough savings from six months to one year before you make a home loan application. The more margin money you pay, lesser you would borrower and low would be your EMIs. Also, higher tenures might lower your EMIs but you would end up shelling out more money on interest rates.

You should discuss these facts clearly with your financial experts before applying for a housing loan. With the inception of online facilities, you can make home loan application online right from the cozy corners of your rental home or offices. In fact, some lenders have come up with a smartphone app to make an application, check the loan disbursal, monthly installments and make the repayments through the app as well. Thus, it not only saves your time and energy but lets you focus on more important things in life such as meetings, yoga or music classes, and else chill out with your friends or family at your dream abode.

Create moments rather than creating confusions in your minds. Apply for a home loan online, now!

Hi, I am Anurag Mishra working with Home Finance company as Home Loan adviser owing good knowledge of Home loan, Home Loans, Home Loan Balance Transfer, Mortgage Loan, Property Loan and Personal Loan so on.