If you are tired of paying high rent and looking to own a house, it’s time you apply for a home loan. While there are many banks and financial institutions that readily offer home loans to eligible customers, it is imperative that you understand that this is a long-term commitment. A clear understanding of what entails is sure to help you make an informed decision. If you are planning to take up a Home Loan soon, follow these 7 tips for the best Home Loan experience: –
Begin by Saving for the Down Payment
Depending on the type of Home Loan you choose and your lender, the down payment may range between 2.25% to 20% of the purchase price of your home. Hence planning your finances well before taking a Home Loan is essential.
Check your Credit Score
Having a good credit score is essential to bag a good deal on a Home Loan as your credit score summarizes your credit worthiness. You can get your credit score from the CIBIL website and check how your credit profile looks like to potential lenders. If your CIBIL score is 750 and above, there are high chances that you can secure a good deal on your Home Loan.
Compile Your Financial Documents
A Home Loan application requires a number of financial documents like the last few month’s payslips, tax returns, and bank statements among the others. Having these handy beforehand will help you apply for a Home Loan in a smooth and stress-free manner. Apply for a home loan from Finserv MARKETS and make the most of our online and paperless application process.
Use A Home Loan Calculator
Before applying for a Home Loan or even buying a home, it’s important to understand how much you can afford. A Home Loan calculator enables you to calculate various aspects of the loan such as monthly payments and down payments according to the house price, tenure, rate of interest etc. You can use the Finserv MARKETS Home Loan Calculator to understand your Home Loan better.
Compare Home Loans
To choose the right Home Loan, it’s important to compare Home Loans offered by different lenders. Don’t be fooled by loans with similar interest rates. There are several other rates and fees which can make one Home Loan more expensive than the other. So before you make the final choice, make sure to understand all the rates and fees carefully.
Understand The Various Types of Home Loans
Depending on the lender, there may be various types of Home Loans available in the market. For instance, Finserv MARKETS offers different types of Home Loans such as Home Construction Loan, Land Purchase Loan, Balance Transfer Loan etc. Therefore, you need to make the right choice depending on your unique needs and financial situation.
Understand Foreclosure Norms
It is essential that you understand the prepayment clauses set by the lender before availing the home loan. This will help you avoid any inconvenience in the later stage. Recently, RBI banned foreclosure penalties. Don’t rush into decision making while availing a home loan. You should also check if you satisfy the Pradhan Mantri Awas Yojana (PMAY) eligibility. If you do, ensure to make the most of it while availing the home loan. Knowing these home loan tips and tricks can help you avail the best deal for yourself.
Pre-qualification provides you an estimate about the loan amount that you can borrow. The process to pre-qualify for a home loan is comparatively simple. All you are required to do is to share some basic financial information such as your income, savings, and investments details. These housing loan tips can help you avail a loan that best suits your needs.
Read The Documents Carefully
Before signing the final loan agreement, make sure to read each clause written in the document including the fine print. It’s important to understand all the terms and conditions of a Home Loan if you want to have a smooth Home Loan experience during the entire tenure.
By applying for a Bajaj Finserv Home Loan with Finserv MARKETS, you can avail a host of benefits and if you are a first time applicant and eligible you can enjoy additional benefits under Pradhan Mantri Awas Yojana scheme.
Also, read about Home Loans.
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