In an ideal world every person wants to have his own house. But, everyone can not afford the amount to buy a property. So, there are banks who provides you home loan to buy your own house or property. Buying a home can be fun and exciting experience. But, finding the right home is just one step in the process. Choosing the right home loan can be just as important as finding the right home. Applying for a home loan is easy nowadays. But, Still there are so many things that you should keep in mind before applying for a Home Loan. Here are some tips to help you find the right home loan as easy as possible.
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1. How much amount to borrow?
The first step to follow before applying for a home loan is the amount of money you required for buying the a home/flat. Never borrow an amount that you can not repay on time. Always choose home loan amount according to your monthly income or business so that you can repay on time. If you are a salaried person then choose according to your monthly salary and if you are self-employed then choose according to your yearly business. Using the home loan eligibility calculator allows buyers to plug in variables such as income, monthly debt, credit score and down payment.
2. Find the Right Lender and Real Estate Agent:
Finding the right lender is the second step before applying for a Home Loan. There are many banks and real estate agents in the market who provides Home Loan services. Every lender has their own terms and conditions. To find a right lender get recommendations from your friends and family and check online. Talk to the lenders and ask them questions related to Interest rates, home loan Tenure, monthly EMIs, Pre-payment of home loan and make sure their answers satisfies you. Find someone that you are comfortable with and who makes you feel at ease.
3. Eligibility criteria and Documentation:
Banks and Real estate agents have various parameters upon which they calculate a candidate’s potential to repay loan on time. It covers the age of the applicant, nature of employment, monthly income, work experience and CIBIL score with the bank. Documentation covered the part in which bank asks for your salary slip, form 16(ITR), your photographs, address proof, age proof etc.
4. Keep Tenure as short as possible:
The maximum Home Loan tenure offered by all major lenders is 30 years. The longer the tenure the lower the EMI, which makes it very tempting to go for a 25-30 year loan. However, it is best to take a loan for the shortest period you can afford. Because, in long term tenure the Interest rate goes high. The longer the tenure the higher the interest that the banks earn from you.
5. Pre-payment of Home Loan:
Pre-payment of home loan is financially beneficial for home loan borrowers. It helps to reduce Interest burden on overall cost of loan amount. Paying off the loan amount early is good and you can pre-pay your home loan by paying an additional sum over your regular EMI. You can also reduce the number of EMI and the tenure by pre-payment of home loan.
6. Get a Pre-Approval:
Once you have the right mortgage lender, make sure you get a Pre-Approval. The Pre-Approval process can clear the way to getting a home loan by outlining the total amount a lender will offer based upon applicant’s credit score, salary, and employment history. Pre-Approval will give you a better idea of how much loan amount you qualify for and you can search for the right home according to that pre approval loan amount.
7. Look for the Right Home:
Now that you have the Pre-Approval, you can look for the house that suits you best according to your requirements. When you find the house you want, do negotiate the price with the owner because most sellers price their property a bit high. Always start the price 5-10 percent below the asking price. Once, you get the price you are comfortable with make a deal.
8. Apply for the Home Loan:
Now that you have find the home you were looking for, you can apply for home loan. Collect all the documents which are required. Go to the lender and do the formalities as you discussed with him at the time of Pre-Approval of your loan or you can apply for home loan online also.
Loansninsurances.com is the most trustworthy online platform to apply for any home loan to meet your various requirements such as home construction, home purchase, home improvement, home extension, etc. We will be with you at every step untill and unless your loan gets sanctioned, and we also assure you all kinds benefits on each home loan you avail. Check out the best home loans provided by the leading banks in the country from the list given below: