Before you apply for a home loan, you need to make sure that you understand the concept and the terms and conditions related to this type of secured lending. When applying for a home loan, prepare a home loan checklist that will make the loan application process simple and hassle-free for you.
Determine the home loan amount
Check the eligibility criteria
Understand the implications of a home loan
Understand the home loan terms and conditions
Maintain a good credit score
To explain to you how simple it is to avail a home loan.
Here’s a quick rundown on what this checklist includes.
1: Determine the home loan amount
One of the biggest challenges that new home buyers fail to understand is that you need to ‘cut the coat according to the cloth’. In other words, people start looking for houses before estimating the budget they can afford. Hence, before you apply for a home loan, estimate a budget that you can afford and include all the sources along with the loan amount.
2: Check home loan eligibility criteria
Usually, home loan eligibility criteria include age limit, source of income (salaried or self-employed), documents to be submitted, the age of the property that you are planning to purchase, maximum loan amount and other related parameters.
Many lenders have home loan eligibility calculator available on their website that helps you calculate how much home loan amount you are eligible for. At times, you cannot avail a higher loan amount on your income alone. In this situation, you can apply for a joint home loan with your partner or other family members as a co-applicant(s).
3: Understand the implications of a home loan
From time to time, the government and state authorities offer various incentives on home loans. These incentives can be in the form of tax benefits, interest subsidies, and stamp duties. Hence, before you apply for a home loan, make sure that you are knowledgeable regarding the same so as to make the best use of them.
4: Understand the home loan terms and conditions
Along with the eligibility conditions, you would come across certain other parameters that can affect the home loan application. These parameters include
Fixed or floating interest rate
Fees and charges for late payments
Discuss them with your lender and settle any doubts that you may have. It is noteworthy that each of these parameters can affect your home loan application.
5: Maintain a good credit score
Your credit report is an important factor that determines whether or not your home loan application will be approved. Hence, it is always advisable to maintain a credit score that is good enough for your potential lenders to draft a favorable deal for you.
In case, you happen to service any other loan before applying for a home loan, make sure that you have been making a regular payment without defaults. Having a low credit score will force financial lenders to reject your home loan application.
The Bottom Line
The above-mentioned pointers are some of the most important things to consider before you avail a home loan. With this checklist, you can secure some best deals on your home loan and eventually have enough money to buy your dream home.
Are you looking for some home loan offers? Get in touch with us at Finserv MARKETS and benefit from features like low EMI, minimal documentation, bespoke loan solutions and much more. In fact, your loan application is approved almost instantly and the loan amount is credited in your bank account within 24 hours. So, apply for Bajaj Finserv Home Loan with Finserv MARKETS today itself!
Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!