Worried about financing your first home purchase or renovating your current house? Alternatively, have you already applied for a home loan but worried if it will be approved or not? Stay calm, we have got you covered. A home loan is an excellent way to realize your dream of owning a home. However, when it comes to loan application approvals, the process takes quite some time.
Therefore, it is important that you understand how lenders / financial institutions assess a home application as well as the applicant’s eligibility.
In this article, we have laid down some tips for you to ensure quick and hassle-free approval of your home loan. Therefore, before applying for a loan, be sure to take a look at some of the tips below that can help you plan your next steps:
1.Determine the costs
Once you have finalized the choice of your home, you must determine all the additional costs that you might incur in the process. Some examples include cost of additional repairs, maintenance work etc. On top of that, you must also take into account your savings and investments that can be liquated to raise funds. All these calculations will help you determine the exact loan requirement to complete the purchase.
2.Know the terms and conditions
It is crucial that you clearly understand the various parameters when applying for a home loan. As they say Caveat Emptor or “Buyer beware”, you must ensure that you know and review and the various terms and conditions related to the home loan that you are applying for from a particular financial institution. Moreover, get a clear insight into the interest rate, repayment tenure, prepayment penalty, Equated Monthly Installments (EMIs), and other factors before making a final decision. Finserv markets provides 100% transparency i.e. no hidden charges, no dubious policies etc.
3.Compare before finalizing
An online comparison of the different loan options offered by various financial institutions is an excellent way to make an informed decision. You must compare interest rates, repayment tenure, EMIs, and other terms and conditions across different lenders and choose the one that best suits your needs. However, it is advisable that you do not make a decision on just one single parameter such as going ahead with a lender offering the lowest interest rate or EMI. This is primarily because as other factors such as processing fee, client-servicing charges etc. might be significantly high in comparison to other lenders and may adversely affect your financial planning.
4.Review the loan agreement
Although the loan agreement may seem to be an overwhelming document to review, it is critical that you read it thoroughly to ensure there are no surprises in the future. Focus on clearly understanding the various terms and conditions and parameters such as late payment fees, maximum loan amount, prepayment penalties etc. before signing on the dotted line.
5.Calculate the EMI
The loan amount is repaid in EMIs calculated on the basis of the borrowed amount, repayment tenure, and interest rate. You must choose an EMI that fits within your financial planning parameters and ensure that you do not face any liquidity crises when paying your EMIs. Ensuring that EMI does not create a financial burden for you, it is critical to avoid late fee charges which may quite step for some lenders. Also check, whether you are eligible for PMAY scheme to avail additional benefits of reduced EMI and a lower interest rate of 6.93%. Finserv Markets offers flexible repayment tenure up to 300 months & also there are no charges for pre-payment or loan foreclosure.
6.Processing charges and documentation
Most lenders levy processing charges to approve and sanction your loan application. It is beneficial to understand these beforehand because these charges increase the effective cost of your borrowing. Minimal documentation required at the time of applying for a home loan at Finserv Markets as mentioned below:
- Aadhar Card/Passport/Driving License.
- Address Proof.
- Identity Proof.
- Form 16 or your latest salary slip.
- 6 months’ bank account statement.
Bajaj Finserv Home Loan at Finserv Markets offers you a quick, easy and convenient way to help you realize your dream of owning a house. You can apply online through our website for a quick approval and a fast disbursal of the loan amount. In addition, at Finserv Markets, you can directly pay the seller ensuring you are able to move into your home without any delay.
“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”