Planning to buy a home? Surely a loan may assist you greatly in buying your desired home. Furthermore, the loan will support you in decorating your home as per your tastes and lifestyle. Today seeking a home loan is not a difficult task for genuine borrowers. You may find plenty of financial institutions while hunting for loan for buying a home.
With so many choices you tend to get confuse as how to pick the perfect lender for your Home loan? Well, here are some tips that may help you in choosing so:
Cost effective deal: The biggest factor under consideration is the cost of loan i.e. the interest cost on loan amount over the tenure. Besides, central fixation of base rates for home loan, several institutions charge higher rate of interests with their meticulous calculation during the loan period. It may be difficult for a layman to understand the calculations. However, you need to be careful enough to figure out the actual rate being charged from you. Undoubtedly, the company that offers loan at lowest interest rate serves you a cost effective deal. It is wise to join hands with such a financial institution.It is not possible to give the name of one bank which charges the lowest rate of interest for all tenures and all levels of loan amount. Moreover, these rates are frequently changed by banks and that too without informing media. Although a non-banking financial corporation, Bajaj Finserv offers online home loans which are available at an interest rate of 9.85% (among the lowest in the industry)
Understanding of Technicalities: Basic understanding of workings in loan procedure is important. The borrower must be aware of the types of loan i.e. loan available at fixed or floating rate of interest. Additionally, he must be able to judge the apt duration of loan for him, whether he wants to borrow for 10, 15, 20 or any other number of years. Accordingly, EMI and other essentials are calculated. Institution’s policy for other charges like Processing Fees, Mortgage Deed Charge, Foreclosure Charges etc., must be cleared in detail well in advance. All the documentation needed for applying for a loan should also be noted carefully. Everything must be precisely marked by borrower before starting with the loan procedure. If you can conveniently accept the policies of a particular financial institution, probably that one is the best for you.
Services: A financial institution that serves you for explaining all the technicalities in detail, till you understand every bit of it, is more reliable than those who keep facts and figures hidden. Executives at dependable institutions also guide you with the cumbersome documentation involved. Payment of EMI, repayment of the loan, after loan support, customer care services and other similar facilities offered by a financial institution need to be analysed before finalizing the financial institution as they ensure smooth repayment of the loan amount in the long run.
Even if that isn’t the case, there are a host of online banking options available which simplify the process of applying for a home loan. To doubly secure your investment, get a proper inspection of the property done to rule out any damages or faults with the house.
EMI Failure or Prepayment of Loan: A genuine borrower may also miss to pay EMI at some or the other point of time for once or so during the whole loan tenure for some genuine reason. In such a case few financial institutions adopt strict policies and some adopt liberal policies. It would be wise to clear related policy of the financial institution you are considering. Similarly, a financial institution that does not charge extra for prepayment of loan or charges minimally would be apt choice for the purpose.NBFCs like Bajaj Finserv even let you set up an online account to keep a track of all your home loan payments for the entire loan duration.
Briefly, it would be right to say that seeking a home loan is an astute decision which must be taken after in-depth analysis of all pros and cons involved.