Buying a home brings a lot of financial responsibilities for an individual. Availing a home loan is like a Hercules task and getting the best home loan rates can’t be opt without the understanding of housing loan. Home loan borrower should be aware of interest rate, credit score, documentation several fees related to a home loan. An individual should avail the best home loan as it brings a lifetime responsibility on the borrower. Availing best home loans depends on ideal research of various aspects of the home loan.
Points you should consider before taking a housing loan:
Lenders give higher priority to borrowers with credit score more than 750. Thus, before applying for a home loan, the borrower should get his or her score rectified and make it eligible for the home loan.
Home loan rates determine how much amount the borrower is going to pay in the entire tenure. An individual should do a home loan comparison among several banks and NBFCs to get the best home loan interest rate. Borrowers should know about all the kinds of interest rates levied on the home loan by the lenders.
Home Loan Tenure:
Home loan tenure plays a crucial role in deciding your EMIs. A borrower should create an ideal plan for a proper housing loan tenure. Banks and NBFCs give major preference to borrowers who demand shorter home loan tenure. Secondly, the shorter repayment option will directly reduce your home loan interest rate.
Borrowers have to pay processing fees to lenders once the application of home loan is approved. Usually, banks and NBFCs charge around 1% of the total housing loan amount that has been disbursed. Sometimes, lenders minimize processing fees of the home loan to attract customers.
Home Loan Documents:
To avail the best home loans an individual has to go through lots of documentation process. Borrowers have to submit dozens of documents which makes the home loan process back breaking. So, an individual should opt a housing loan with minimal documentation.
A borrower should make a huge down payment while buying a home. As it will help to reduce the EMI and rate of interest levied on the home loan.
Equated Monthly Installments
EMI is very much important portion of the home loan. The EMI amount depends on the down payment you have done. An individual should decide the housing loan EMI amount according to the monthly income. One can easily calculate EMI through Home Loan EMI Calculator.