For most people buying a house remains the top most priority in life. While there are various financial mediums like traditional finances, borrowing from friends / relatives, home loans are the ideal solutions these days that will help you achieve this dream in a comfortable way. But due to the vast expansion of this segment, often shopping for the best home loan deal often becomes a daunting task for most first-time loan buyers. Especially,to know what amount of cover is required, the interest rate applicable, processing fee, stamp due & registration charges, etc.
The articles helps you consider some factors while choosing the Best Home Loan deal for finance your dream turn into reality:
There are multiple banks & housing finance companies and other non-banking companies who offer varied customized home loan policies. It becomes imperative to conduct a thorough research, compare loan, interest rates, applicable, principal amount eligible for, term and policies before choosing any particular scheme. Random application without any research might lead to unexpected price rise on your interest rates or lead to rejections as well. It might affect your credit score as well.
Your loan eligibility and EMI affordability will depend on the net income source, monthly expenses, additional sources, margin money, and credit score. A poor credit score will lead to increased interest rates or lesser principal amount qualification. Try to improve your credit score before applying for the Best Home Loan deal.
Paying higher EMI's will help you reduce the interest payouts. However, don't let it exceed 40 to 50% of your net monthly income as there are other survival needs that have to be fulfilled on time. They should also not affect your long-term financial goals. Online home loan calculators help you find out your tentative EMIs based on your loan amount, the interest rate applicable and loan tenure.
Usually, lenders offer home loan for a period of around 15 to 20 years. Therefore, it's advisable to keep your cash flow in mind while deciding on the monthly installment and tenure of the loan.
Interest rates are the crucial factor to decide the best home loan deal. It comes in three types – floating, fixed rate or mixed variant. For fixed rates, the interest rate charges are fixed throughout the entire loan tenure and for floating rate; it varies according to economic conditions, market volatility, etc. In case of mixed variant, the interest will remain fixed for a pre-determined period and then it becomes floating interest loan.
Your Best Home Loan deal should ensure it curbs the processing fees to cover various expenses incurred during the assessment of your housing loan eligibility and the value of your property. Ideally, these fees range between 0.5 to 1.5% and are generally non-refundable irrespective of the sanction of the loan amount.
With the advent of the internet, time is spinning across compare to the age old process of visiting banks or finance firms, filling up forms, getting copies attested and then submitting them, waiting for approvals and more. The home loan application is as simple as the click of the button on your computers. Visit the site, download form, upload the scanned copy of your documents and submit online. Within a couple of days, you will get an SMS or email notifications about the loan approvals. There are various sites as well who offer chat service to clear all your doubts on housing finances. So, get set and apply for the Best Home Loan deal,now!
Best Home Loan – Get instant New Home Loan form HDFC for purchase of a flat, row house, bungalow from private or govt development authorities approved projects