Buying the home of your dreams is an exciting process. At the same time, it is the biggest financial commitment of your life. However, to realize this dream, you need to plan and procure finances to meet all your housing requirements.
Applying for a housing loan may seem to be a complex and cumbersome procedure. However, if you follow the steps mentioned below, it may become a quick and smooth process.
Steps To Be Followed To Ease The Home Loan Process:
- Analyze You Financial Status
- Spend Time In Research
- Check Your Credit Score
- Get Your Documents In Place
- Negotiate Terms & Conditions
- Additional Benefits & Advantages
1. Analyze your financial status
It is recommended that you analyze and review your current financial status including your savings, assets, and liabilities before proceeding with a home loan application. This will allow you to determine the amount you are able to spend to buy a home and know the amount you will have to borrow. It is recommended that the monthly installment on the home loan amount is between 40 – 60% of your net income. You may use Finserv MARKETS Home Loan EMI calculator to analyze and understand the various options.
2. Spend time in research
Several lenders offer different types of home loan options. It is recommended you take time to research about their terms and conditions, tenure, features, and home loan interest rates to make an informed decision. For example, when comparing home loan products from different lenders, it is only logical that you opt for one that offers the lowest rate of interest however, there might be prepayment / foreclosure charges, high processing fee associated with it. It is always advisable to give equal weightage to all the parameters when comparing different products.
3. Check your credit score
It is highly recommended that you check and review your credit score periodically as well as at the time of applying for a home loan. A lower credit score does not necessarily imply ineligibility but having a higher credit score can definitely increase your chances of quick approval. Hence, it is important you check the same to ensure there are no errors or discrepancies. Moreover, a higher credit score is beneficial in negotiating better terms and conditions of your loan. Please note, your credit score might take a slight hit when you apply for a home loan. This is primarily because of a hard inquiry or in other words, the process where the lender will extract your credit score as a part of the loan application process. Also get know what is the perfect cibil score for home loan.
4. Get your documents in place
It is a well-known fact that documentation is an important aspect of your home loan application. It is advisable that you have all your documents ready before you start filling your application form as it helps getting your loan approved faster. The documents include: income and address proof, bank account statements, income tax returns, and property- related documents. At Finserv MARKETS, this process is fast, easy and hassle-free. Simply submit all your documents with your application and we get your loan approved in no time!
5. Negotiate terms and conditions
Before you sign the loan agreement, it is important that you thoroughly read the documents and understand all the terms and conditions. It is also recommended that you negotiate with the lender (s) to avail of the loan at the most beneficial terms that reduce your financial burden while making timely repayment option available under 100% transparency policy of Finserv MARKETS.
6. Additional Benefits & Advantages
An important point to note here is to evaluate the ability of a lender to provide you with benefits such as additional top up (which works like personal loan but at lower interest rate than Personal loan), flexi tenure, responsiveness to regulatory and rate changes from RBI etc. At Finserv MARKETS, all these benefits and advantages are a part of our offering to ensure ease and convenience of our customers.
Availing of a housing loan is a long-term and significant financial commitment. It is crucial that you do not rush into a decision and evaluate different options to make the right choice. Taking the time to research everything about such loans will help you make an informed decision. Moreover, when you spend time researching online, you are able to avail of the best deals ensuring that the entire application process is quick, hassle-free, and simple.
Calculate your monthly EMIs using Home Loan EMI Calculator
With a Home Loan EMI calculator you get a clear understanding of the amount that needs to be paid towards your loan EMIs and helps you to make an informed decision about the outflow towards your loan every month. This helps to estimate the loan amount that can be availed and helps in assessing the own contribution requirements and cost of the property. Thus it’s best to know that the EMI is crucial for calculation of home loan eligibility and planning your home buying journey better.
The formula for calculating EMIs is
[P x R x (1+R)^N]/[(1+R)^N-1]
• ‘P’ represents the loan amount or principal
• ‘N’ is the number of monthly installments
• ‘R’ is the interest rate per month. Therefore, if the rate of interest per annum is 11%, then the value of ‘R’ will be 11 / (12 x 100)
Proper planning always ensures stable finances. Calculating your home loan EMI in advance gives a better understanding of the amount of money you would have to spend each month. Hence, you can plan well and decide whether you will be able to spare that much money or not.
Apply now for a Bajaj Finserv Home Loan at Finserv MARKETS!
“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”