Things to Consider Before Opting For a Home Loan
Gone are the days when people used to dream of buying a home of their own. And if someone gathered all the courage, the next step would be to shell put all his savings and accumulate each penny to be able to fulfill the dream of a home. However, today this dream is quiet achievable for many, thanks to the home loan facilities offered by India Bulls Home Loan and all other major banks and financial institutions.
Getting a home loan is easier said than done. Simple as it looks, in reality it is a very complex procedure. In order to save oneself from getting trapped with the wrong kind of home loan and suffering the disastrous consequences it is better to educate yourself and know all the pros and cons. There are a lot of things which need to be understood and considered before taking any decision.
What are the important aspects that you should consider?
- Interest Rates- The most important component of any loan is the rate of interest that the financial institution is charging you for lending the money. It is crucial to know that there are 2 types of rates- Fixed and Floating. As the name suggests fixed rate is constant over the tenure of the loan, whereas floating rate changes along the market ups and downs.
- Eligibility Criteria- With unpredictable situations all around it is not a easy deal to get a home loan or for that matter any loan sanctioned. There is a whole list of criteria that you should fulfill to be eligible for a loan. Some of the criteria being, income of the applicant, no of dependent, age, whether salaried or in business, Cibil Score and so on.
- Choosing the correct lender- No matter how good your loan agent is or how genuine he sounds it is always advisable to carry out your own research and dig into the matter. It is important to assess a no. of lenders like ICICI Home Loan, SBI Home Loan and do a comparative study of each in order to choose the best. It helps in saving you from any horrendous shocks in future.
- Tenure of the Loan- As important as the rate of interest, tenure of the loan decides the amount of EMI. The longer the tenure, smaller is the EMI and vice versa. At the same time, the longer the tenure higher is the rate of interest and so on.
- Read the documents before signing- All said and done, before putting up your signature on those dotted lines it is highly recommended to read the agreement carefully and cross check all the points that were agreed upon. It is better to be safe than sorry. It is better to be alert in the beginning itself than coming to terms with bitter revelations later on.
Buying a home of your own can be a dream come true kind of a thing. Staying vigilant and doing your part thoroughly can make the whole buying thing a happy one. So, do your research well and save yourself from falling prey to fraudulent institutions.