There is boundless happiness that you experience once you decide on buying a home for yourself and have finalised things. But most people go weak kneed when they think of applying for a home loan.
While most of us think of it as a frightening nightmare, truth is if you find the right bank and helping executives, you’d complete the process in 7 days.
There are certain things which you can note before you finalise on a particular loan and can keep them as checkpoints for deciding upon one.
1. Foreclosure Charges: All loans are worked out for a certain period where you pay your EMIs with a certain interest rate. If at any point you decide to pay up your last few EMIs together and close the loan before the said period, the bank might charge you a certain amount as the foreclosure charge. The crack here is to look for loans which specify ‘No Foreclosure Charges’ so that you don’t have to pay extra when you decide to close your loan early.
2. Interest Rate: All banks levy an interest charge on the EMI that you pay every month corresponding to your home loan. Your aim should be to find a loan which offers a lower interest rate on your monthly EMI.
3. Floating and Fixed Interest rate: Each bank offers you to customise your interest rate to a Floating or Fixed rate. Each financial year these interest rates waver according to some terms of the RBI. While a fixed interest rate guarantees that you’d pay the same rate throughout your loan tenure, a floating rate might be beneficial if the rates go low by the years from your initial rate.
4. Tenure of your loan: One can determine the tenure of one’s loan according to the ability of one’s payment capacity. The benefit in opting for a longer tenure is that you incur a lower EMI value for each month, compared to a tenure which is short.
5. Hassle free documentation: There are certain banks which offer to take care of all the process and procedures on your part and don’t harass for documentation process which makes your process easy and convenient.
6. Last but not the least you must compare loan offers, interest rates and terms and conditions of various banks before finalising on the best choice.
With simplified procedures and above points to help in need, you can now make your wish of having a dream home come true.