Buying a home is indeed a big step in individual’s life. A dream home is not just a piece of land, wall of bricks and cemented roof. It’s your happiness, your feeling, and place filled with emotions and memories.
With the ever zooming rates and prior financial commitments it becomes difficult to buy a home through our little savings entirely. Borrowing from friends or family would be against the dignity and no one wants to fall into the trap of traditional financiers. So almost all of us have to take home loans.
In today’s time, a home loan is the best way to finance your dream house as you have competitively low-interest rates and ample amount of time for loan repayment.
One thing the customer has to bear in mind is that since buying a home is a long-term decision of over a decade or two; the interest rates may face several ups and downs. But, eventually, your mind should be negotiated with the lenders where ever possible and curb down the interest rates. Even a 0.5% reduction can save lakhs of rupees in the long run. Falling rates will always prove beneficial for you at some point in the cycle.
Experts say the best way to manage borrowing costs is by actively managing the home loans! Although a couple of decades ago it was a tedious task, however, it is not as difficult as it sounds, these days.
With the help of home loan calculators you can calculate the interest rates and charges applicable, amount being qualified for home loan, your exact monthly installment being set for repayment, tenure for repayment and the remaining amount to be paid as you keep paying your EMIs. If you hold a good credit score, a proper and steady source of income through jobs or business; banks and private lenders will often give new borrowers much better rates than existing customers.
Thanks to the online facilities offered by leading banks and private finance companies. Today, at the comfort of sitting at home or office, at your convenient time you can get online; compare the interest rates, tenure, loan amount being qualified for, and terms & conditions of the finances being available in the markets.
Once you find a suitable lender, all you have to do is get right details of the loan process, documents required and repayment flexibility. You can personally visit a branch; call up customer service of the lender for the best advice. Online application for home loans is one of the easiest and most convenient medium for the borrowers, who don’t have much time to visit the lender’s office due to hectic lifestyle or other commitments.
It’s a user-friendly way for home loan approval process. Before filling the application online you should spend a few moments to know the process in details. After this, you can move ahead with the right information.
Most housing finance companies have a list of professions being categorized as negative and positive. So, it’s important to understand which category you fall under. The location of your property is also categorized as such.
The ones in ‘A’ zone have higher loan amount eligibility, good interest rates, and fair deals. Your age and the property age also play a decisive factor in your interest rates and loan amount. Housing finance companies also consider details like the number of people financially dependent on the individual, any additional source of income, the individual’s credit repayment history and saving habits.
A tip from an expert would be clubbing all your incomes like spouse’s income, any income from business, perks, bonuses that your immediate family earns. This will help you to move into higher loan eligibility bracket. Secondly, try and maintain good credit score as lenders will be happier if you can show them a good credit history.
Let the lenders see that you’re not financially burdened with any form of debt, credit card bills, mortgages, etc.