Business

Apply for a Home Loan? 5 things to keep in mind

Apply for a Home Loan?  5 things to keep in mind

Points to remember if you are applying for a home loan

Buying a new home requires a huge amount of money, and most buyers depend on financial support.

A home loan can help you realize your dream of owning a home without waiting for maximum savings. Home loans also come with tax-saving benefits.

If you’re looking to buy a home with a home loan, here are a few things to keep in mind.

CIBIL Score

A healthy CIBIL score, better than 750, will likely increase a borrower’s chances of securing a home loan. Scores also have an impact on interest rates and loan terms.

So, if you are planning on taking out a home loan, you should clear all your pending loans and follow disciplined finance rules to raise your CIBIL score.

Full Documentation

While applying for a home loan, borrowers must submit a series of supporting documents, including proof of income, bank statements, and property documents.

Based on these documentary evidence, the lender grants in-principle approval to the loan application. Final loan sanction is subject to active asset verification.

Managing EMI

Sudden loss of income due to market turmoil, illness or any other problem that can affect the borrower’s ability to repay the loan. It is important to have a plan B for loan repayment while considering home loan options.

To secure future loan repayment, you should secure a lump sum equivalent to an estimated EMI of at least six months. This source of money will help you pay off your home loan in an emergency without borrowing from your other investment.

Deposits

Banks only lend a portion of the property’s value. Lenders typically offer a loan of 75 to 90% depending on the borrower’s eligibility and other factors. The borrower must pay the remaining amount as a down payment at the time of purchase.

Paying a sizable sum at the time of the property purchase can help you reduce your monthly obligations or reduce the length of your loan.

Terms and Conditions of the Loan

Before finalizing a loan, it is important to understand the terms and conditions of the option.

While a loan may seem cheap with an apparently low EMI, lenders may charge higher hidden fees and processing fees. Borrowers should compare all the options available on the market to get the best deal.

Source link

news5s

News5s: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button