Tips to get the Best Home Loan India
Posted by Sanjaykale on June 23rd, 2016
Few things bring a person as much satisfaction as being able to put his feet up and relax under his own roof. Owning one’s own home is usually at the top of everyone’s goal lists, and with good reason. Financial websites and magazines have article after article that describe how renting is the road to ruin, and how buying a home makes the most financial sense. However, these days it is near impossible to buy a home without opting for a home loan, and with so many banks and financial corporations offering loans, it is important to take the time to choose the best home loan in India.
The market of Home loan India today is active like never before, with aggressive advertising by banks. Unfortunately, the advertisements don’t begin to cover the lengthy processing that a home loan requires! Then there’s also the well meaning advice from friends and relatives, with their idea of the best home loans in India. Amidst all this, it is important to stay alert and do sufficient research on all aspects of a home loan.
Home loans are offered by both public sector and private sector banks. While the former can take up to 3 months for processing, the overall charges turn out less than the latter. To sift through all the banks and their home loan offers, consider these 5 tips to get the best home loan in India for you.
Improve your CIBIL score
Today, any loan application will be followed by an inquiry into your CIBIL score. Checking your CIBIL score about 6 months to a year in advance gives you the chance to correct any errors and improve your rating to ensure you get the best possible service from any bank.
Calculate your down payment
Even the bank with the best home loan in India will require you to put forth a certain amount as down payment, with the rest calculated into your loan. While it is advisable to pay at least 20% of the total cost upfront, it helps to know if banks can offer more. A larger loan amount means more interest, so consider that in your calculations.
Research interest rates
This is probably foremost on any borrower’s mind. It is very important to do thorough research on current home loan interest rates in India, along with whether they are fixed or floating. Don’t go by percentages alone; calculate exactly how much you’ll end up paying.
Look at the fine print
Banks are notorious for extra charges hidden among rows of fine print. Ask about processing charges, service charges, taxes, and prepayment or foreclosure charges. Also enquire about penalties and late payment charges so that you are well informed about all possibilities.
Home loan insurance
When looking for the cheapest home loan in India, insurance often gets ignored by borrowers. Home loan insurance is important in the eventuality that something happens to the borrower and his family is left to deal with the aftermath. This insurance ensures that the borrower’s dependents are not pressurized into paying an EMI they cannot afford and are not driven out of their home.
The search for the best home loan in India is not an easy one, but the trouble is more than worth it. When you have done your research about all the aspects of a home loan, you can make an informed decision and choose the one best suited to help finance your dream home.
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