Things you should consider before going for a home loan

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Making a house is one of the biggest dreams that a person nurtures his entire life. Not everyone can afford a home. Most of the people need to go for a home loan before they plunge into buying property in India for themselves. According to Address of Choice Realty now taking a home loan is quite tough. Initially, the company would offer you lots of wonderful things and promise you to stay by you till the end. But then most of the companies do not keep their promises and you would get some worst surprises from their end. The best way of saving yourself from these consequences is to be a little aware of the whole situation and find details about the company you are going to take a home loan from. Here are a few points that you should consider while choosing one company for your home loan.

Check your eligibility

So not everyone is eligible for a bank loan. Have you ever faced any critical situation regarding the bank loan thing? If you have an EMI going on, the bank would probably check your asset and your capability of paying back the loan. If you have dependants back in your house or if you have more than one loan going on, the chance of getting an approval is very less. Your financial situation is, of course, an important point. But besides that your social status is also another important factor that you should keep in your mind. If you have a good social back up, then companies may think of allowing you some extra money! Basically, choose a company that doesn’t bother much about this eligibility thing.

Types of home loans

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Two types of home loans are available; the fixed one and the floating one. In case of the fixed one, the amount that was decided in the beginning will stay the same; whereas in the case of the floating one, the interest rate fluctuates with the change in the market. The interest rate in case of the fixed one is always a bit higher than the floating one. But the fixed one has particular security that the floating one doesn’t have! The clauses involving these two types vary from bank to bank. When you are searching for one good bank loan, try to judge these points in the first place.

Read the clauses first

Loans clauses are one of the dangerous things on earth. We all are not lawyers and hence it is absolutely impossible for us to read and understand each and every point depicted there. It’s sad but true that most of the people out there sign the loan papers without even reading a single line on the clause sheet and later face consequences of this haste. Paperwork is an important thing in case of loan procedures. So make sure you have all the required details when you want to go for loan approval.

Negotiate and compare the quotation given by all companies

Do not leave the whole thing without negotiating. Lots of companies are out there and this is not the only company that is offering you home loans. So while you are going to search the company that you want to take a loan from, make sure that you at least compare the price offered by them. There’s always a standard amount available in the market. Make sure that you know the standard rate and find the company according to your budget only.

Pay off the loan as quickly as possible

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Do not burden yourself with a huge amount of EMI but at the same time, do not take too much time to pay off the loan as this may need you to pay more money in return! The more time you spend paying their loan, the bigger that loan mount tends to be. If you are planning to buy residential flats then you must think about this.

When your loan is going on with a company, you can still search for better offers out there to buy property in Mumbai. If you get better offers, you can always go for them. Do not think that you have to stay quiet in your current situation only. Search about the consequences even before you applied for a loan from the company. Read the clauses thoroughly. You may switch to another company offering your better loan points. You have to pay a processing fee which is not a huge amount anyway!

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One Reply to “Things you should consider before going for a home loan”

  1. Well written. But you skipped some important points to consider before opting a home loan –

    1) Is your CIBIL Score well-maintained?
    2) Have you checked your Loan Eligibility Amount?
    3) What should Loan Tenor Suit You?

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