As the urbanisation is increasing, So is the need for getting a house that suits your lifestyle. For fulfilling this dream you don’t need to have lumpsum amount in your pockets and of course as a common man nobody even think of owning a dream house in today’s scenario. Approaching banks for getting the loan is just the secondary thing but primarily it’s important to keep note of some things that are essential for you before getting your hands on the loan amount.
According to the Social Media Exposures, Most of the people fail to repay their loan and comes under the defaulters list. This happens due to the incapability paying your loan EMIs on time. So before going to the bank you need to know few things.
Here are the 5 most important tips that you should know before getting your first home loan.
- Know your repayment capacity – First things first, You need to know about your financial status. There must be expenses linked with your lifestyle. Try and note them down so that you are able to take out a clear picture out of it.
- Manage your expenses – Once you have taken loan try and figure out your expenses. Manage your monthly spends keeping the fact in mind that you have to pay your next month EMI. it’s not necessary to spend more than your capability when you have a loan going on.
- Plan Your EMIs – The most important factor after your loan disbursement is your plannings on how you are going to take out the EMIs (Easy Monthly Instalments) every month. You can also calculate your EMIs with Home Loan EMI Calculator. You need to have funds every month. If one month you are unable to pay your monthly installment due to some emergency then you might have to pay the next month EMI with penal charges and other bounce charges. Not only this but your financial health also gets affected. Secondly, If you are having loans already going on then try and avoid taking too much credit as it can put you through trouble.
- Don’t spend more than your requirements – Try not to consume the whole credited money and even if you are doing so, Try and do it in a more uniform way. Have a more systematic approach towards your financial portfolio.
- Make sure to have an ideal CIBIL Score – Banks foremost criteria to judge your eligibility of getting loan is your CIBIL Score for that you need to have a sound CIBIL Score. This credit score comes with your loan repayment regularity and how swiftly you carry out your credits.
Read More: How to Improve Your Cibil Score