Purchasing a property is not for the faint-hearted. And it isn’t because money is involved—a lot of money.
You obviously cannot miss out on the house you’ve researched and eyed for so long. The age old tradition of utilizing your savings also wouldn’t be a great idea because you’ll always need money to address emergencies.
So, what do you do?
It’s simple; you opt for a Home Loan. You get plenty of money in your hands, which can then be repaid as per your income. Not just that, you get to decide the tenure for repayment.
With such a lucrative deal on offer, how do you pick the best deal for your purchase? Well, you’ll come to know of that as you continue reading. But first, you should explicitly understand its necessity, and the underlying process.
Why Should I Take a Home Loan?
The market for real estate and property is a fast moving one. The sooner you invest in a home of your dreams, the better chances there are for returns. Plus, it is always a great investment strategy for the future. A loan also helps to bolster your income in a planned manner so that you have less to stress about after buying your home.
With convenient and lucrative Home Loan options, it is not a daunting task anymore to purchase your own home. There are loan deals that allow for flexible EMIs and also make use of low Home Loan interest rates, thus securing your financial stability.
How Do I Apply for a Home Loan?
As long as you’re an Indian resident, over 25 years of age, and salaried, with a work experience of more than three years, applying for a Home Loan will not be a daunting task. You’ll need to submit your personal and financial details, employment status, along with documents like complete loan application, three passport size photographs, identity proof, and proof of residence.
Once the application is approved, you’ll be given the clear to discuss terms with your banker and set a realistic goal for repayment.
How Do I Find the Perfect Deal for a Home Loan?
Once you meet the age criteria mentioned above and have a stellar credit score, submitting the loan application will be a cakewalk. However, you must consider the following parameters so that you avail the best deal in the market:
- You should co-sign with your spouse or any earning member of your family to get a higher amount sanctioned
- Negotiate fixed or floating interest rates with your lender based on your preference
- Try saving more and make bigger down payments to reduce interest charges
- Check for hidden charges such as prepayment and application processing fee
- Ask if the repayment schedule and EMIs are flexible
- Check the lender’s policy for a Home Loan transfer clause which will help you in the future to switch to a better lender offering lower interest rates
A Home Loan will bring you closer to your dream home; however, it’s still a debt at the end of the day. Therefore, read through the policy documents, ask questions, and always seek help from financial experts.