As we aspire to own a home among other things necessary to live a good life, one of the greatest challenges we face involves balancing our investments. Buying a home involves a large financial commitment, and the consistency to support and sustain the effort. Should you be short of finance, you don’t have to necessarily liquidate your investments. A home loan offer could be the ideal choice.
This type of loan happens to be the most common type of borrowing a bank or a housing finance company has to offer you. Repayable in easy monthly installments over flexible repayment tenures, the right choice of a home loan may prove to be the simplest streamlined solution offered to own a dream home.
Though market trends might indicate that this may be the ideal time for homebuyers to purchase real estate and invest in the future, corrections are a constant market mechanism, which needs to be provided for. Should you be contemplating a property purchase with the help of a home loan in a market scenario that has a large number of ready homes on offer, you ought to make sure you make the right choice of a lender to see you through comfortably from the activity of applying for a loan to the repayment process.
This article attempts to be a short complete guide to the home loan process, as also a home loan guide to a home loan. Consider the following factors to clinch the best deal before you choose a bank for your home loan.
Loan Eligibility
Home Loan eligibility criteria differ from institution to institution. Traditionally, Banks have more strict eligibility criteria, while housing finance companies (HFC) and non-banking finance companies (NBFC) have a degree of flexibility. Either way, a thorough assessment may favor you better in terms of loan-to-value ratio (LTV ratio).
Interest Rate
Low-interest rates are without a doubt preferred criteria; get a hang of your actual outflows in terms of interest rates at the end of the home loan tenure to make sure you don’t end up paying the bank more. Also, don’t forget to check whether you’re being offered floating rates of interest or fixed rates. Floating rates work in your favor. Likewise, check whether the bank has a repute for implementing revisions in loan rates as soon as rate revisions are announced.
Prepayments
Check whether the bank offers prepayment options, and also check whether prepayment charges are involved. Favorable prepayment options allow you the flexibility to smartly save money in terms of interest payments, especially if you choose a long-tenure home loan that comes at a higher rate of interest.
Bank Charges and Fees Structure Transparency
Make inquiries regarding types of fees and charges payable throughout the loan tenure. Processing fees, technical fees, mortgage charges, foreclosure charges, etc., are typical fees and charges applicable on home loans. Clarify in writing these issues for a smooth ride.
Digital Access
Most banking and financial institutions are moving towards digital platforms and apps for convenience. Paying EMIs, fetching loan account statements, raising queries, etc., makes the home loan process from application to repayment, easier with digital access. A tech-savvy bank could be your ideal choice.
Home Loan Process
Though the home loan process may be standard across the industry, make sure you select a bank that offers a hassle-free process to hasten the time taken to sanction your loan. Associate with a bank that offers you an easy and simple time-saving process.
Single Point-of-Contact
One-stop shops are a frequent value suggestion in the market today. Check the veracity of such offers to get all your needs serviced at a single point of contact.
Mortgaged Documents
Documents are proof, and as such you need to make sure the bank you choose follows the right procedures to keep your documentation safe. Don’t forget, that your mortgaged documents are your claim to your home.
Home Loan Insurance
Choose a bank that offers home loan insurance along with your home loan package. This secures your dream home since, in unforeseen circumstances, the insurer settles your outstanding home loan amount. Don’t forget, you also profit from tax benefits on premium paid.
Bank of your Choice
No matter how large or small the size of your loan, make sure you choose a banker who understands you and your finances. Choose a reputed banker who you can depend on. Check the institution’s credibility since you’re looking at a long-term association. A hitch could run your finances aground. Shortlist your loan provider only after you have checked on ethics, professionalism, and the type of clientele serviced.
Doing your research yourself will not only simplify your home loan process but will also ensure you have a secure roof for a good life. Optionally, Ruloans Distributions Services Private Limited (RDSPL) has an assortment of customizable home loan solutions for you, which range from Purchase of Residential Property Loans to Acquisition of Land Loans, and Home Construction Loans to Home Expansion Loans and Home Renovation Loans, so that you may make a selection to suit your individual need. For your choice of home loan, visit ruloans, and call a Ruloans Agent for sound advice on 1800 266 7576 for much more than money!
