Understand the House Loan Process for a Fair Home Loan Decision

Posted by reliancehomefinance on October 25th, 2016

Home buying is undoubtedly a costly affair. Many a times we don’t have enough money to finance our house. Home loans provide the best financial support during such a time. But in order to suffice to our financial requirements, we sometimes rush into the decision of finalizing a home lender. This must be avoided at all costs because our relationship with the financial institution will go a long way. Therefore, we must choose the financial service company (HFC) or the bank that provides favourable terms and conditions. Instead of falling into the trap of an HFC, you must do your homework and read every detail available on the home loan lender.

If you choose a home loan lender without adequate knowledge, you might have to bear the brunt of hidden charges. Make sure the excitement to buy a house or the persuasive agent must not affect your decision. Here is a list of important factors you must consider to understand the process of seeking loan better.

1. Rely on a well-known lender

When it comes to granting House Loans, every financial institution has its own method of the screening process. While some process it quickly, others may take their own time. Just make sure you choose a reliable lender whose terms and conditions fit as per your requirements.

2. Loan approval process

There are a few HFCs that take a couple of weeks to process your loan application while others make take a couple of months to do the same. The processing fees of financial institutions may also differ due to many different reasons. Every HFC has its pros and cons; you just need to pick the one that suits your requisites.

3. Eligibility

Only after you submit your application form and the necessary documents, your eligibility for house loan will be decided. The lender may ask for your bank statement showcasing your last six months transactions, salary slip, last 3 years’ form 16, PAN card copy and address & age proof. The lender will do due diligence after you submit the documents and check your credit history.               

4. Borrowing costs     

When seeking a loan, a few expenses are incurred by the borrower. These includes service tax, processing fee, franking charges applicable for registering the loan document and rate of interest that could either be floating or fixed. Know about all these charges before signing your loan agreement. Look if the lender has charged any other fees from you. If yes, clarify the details with him.   

5. Loan repayment    

Before you sign the loan agreement, read the entire loan document carefully to understand the terms and conditions. Also, read the settlement and foreclosure clauses. These are some of the areas where borrowers feel that they are being overcharged.

It is important to weigh all these options properly before you choose your house loan lender. Thorough research and detailed understanding of the borrowing process before signing the dotted line will certainly make your loan repayment course a peaceful one.    

Link To Directory
Top Searches - Trending Searches - New Articles - Top Articles - Trending Articles - Featured Articles - Top Members

Copyright 2020 Uberant.com
680,770 total articles and counting.