Buying a property in India is an important financial and emotional decision. Consider every detail, big or small, before finalising the deal and investing your hard-earned money. The administrative and application process may seem lengthy and confusing when applying for it, so it is better to research and be informed.
Before applying, you should know the current Home Loan interest rates in the market to select a plan to optimise your current resources to buy your dream home. Applying for schemes with low interest rates is favourable. Here are things to consider:
- Compare different schemes
Before you fixate on a particular Home Loan scheme, compare them across various banks. With greater ease of access, thanks to the Internet, researching your Housing Loan schemes has become simpler and quicker. Making an informed decision after considering various equated monthly instalments, interest rates, processing fees, and hidden charges can help you secure the best deal.
Since property prices are rising, finding an economical and budget-friendly Loan is important. Use an online EMI calculator to compare varied EMI options banks offer to select the most suitable one.
- Check your credit scores
Your credit score is an important indication of the nature of your Housing Loan, as it is linked to the interest you pay. If your CIBIL score exceeds 750, your bank will offer you the best interest rates on the options. A three-digit numeric summary of your repayment history represents a CIBIL score.
If it is below 750, you might need to pay a marginally higher interest rate. CIBIL offers its customers one free report a year, so you can check yours before you apply for a Loan. A cheaper Loan might enable you to buy a lavish property, so check your CIBIL score before negotiating with the bank.
- Decide the tenure
Home Loans consist of tenures of as long as 30 years. Deciding on the tenure is also important when considering a House Loan. Understanding your financial capacity is key. Using an EMI calculator online can ease the Loan process. Most people end up paying high EMIs, which they justify by predicting that their annual income will rise steadily. However, this may not hold true for all. Therefore, you should consider calculating your income to a realistic standard.
Though banks decide the Home Loan interest rates from a minimum to maximum range, the rate ultimately depends on your financial capacity as a borrower. By adding your spouse or any relative as a co-borrower, you can increase your Loan eligibility by combining your income with theirs.
Conclusion
Your home is a significant investment. Ensure you have enough funds to repay the principal Loan amount with interest in EMIs over the tenure. Shop around, opt for Loans with low interest rates, build your credit score, check the information mentioned on your documents carefully, and finance this asset.
