There are many lenders out there who have very lenient home loan options but it is better not to sign on the dotted line with the first lender who approves your application. You home is going to be your biggest asset throughout your life and you would be a entering a long term financial arrangement when you start repaying the loan. Hence, scout the market with caution so that you might get the best home loan offers for yourself.
- It is important to remember that the cheapest loan is not always the best and one should look for competitive home loan interest rates and also look at the other costs involved. Some lenders only offer a teaser rate in the beginning when in reality they have very high home loan interest rate and appraisal procedures.
- One must also choose between floating and fixed interest rates. Some prefer fixed interest rates over floating one but what is deemed to be so may not remain so in a volatile market. the loan might come with a number of clauses as well. Hence it is always better to choose between the floating interest rate over the fixed rates. One can use a home loan EMI calculator to determine how much difference with both the interests make.
- It is essential that one calculates the EMI to the last digit to understand which kind of home loan product they would prefer. It is essential to go through all the calculations so that one can decide how much one can set aside each month towards home loan repayment. In fact, the lender will only approve the loan in the first place depending on your capacity to repay the loan and that is why one should use a home loan eligibility calculator to determine how much one can set aside.
- Do not just sign on the dotted line just by going through the information available on the website since they provide very generic information. Go through each and every detail of the home loan agreement and also make sure you read in between the lines. The clause regarding hidden charges is mentioned in these areas so you should always clarify your doubts with an executive.
- In their hurry to book their dream home, some do not allot the required time to research their loan options and this is how they make a bad deal. To save valuable time, one can opt for pre- approved home loans. Even if the final property is not finalized, one should acquire a provisional letter. This will also make you familiar with the process.
- Try to get the best deal for yourself, make sure you have an evaluator to tell you about the correct market value of your property. You must also be careful to deal with a builder who has a reputation with giving good real estate deals and does not have a past of shady property transactions. Even the bank will not approve the loan if the papers are not correct.
- Always keep an eye out for new schemes that will help you save money in the long run. Try to look beyond the obvious offers and instead, go for options that connect your home loans to a flexi current account and that could reduce the home loan interest liability to the extent of the surplus funds in the operative current account.
Bajaj Finserv has some of the best home loan deals in the market today and contact your loan officer there today for the best home loan deals.