If you have decided to apply for a home loan for buying a residential property, then following steps will help you get the best deal.
- Know the Involved Costs
After finalizing the house you want to purchase, know for sure how much would it cost along with additional overhead charges:
- Check if you can use savings or liquidate assets to raise funds to buy the house.
- Get an idea about exact home loan amount you would need.
- Important Parameters
Scan the market or simply visit loanbaba.com to know the best home loan options that suits you. The parameter to consider is interest rates, EMIs, pre-closures, repayment tenure, according to the financial institution chosen.
- Know the loan schemes offered by bank you have an account in.
- Understand final home loan amount:
Property Cost – Money you have = Loan Amount Needed
- Negotiate and Finalize
Try to snatch the best offer by the financial institute. Know type of interest rate you have to adhere to- floating or fixed.
- Compare banks, and shortlist the one you want to stick with for home loan.
- Choose a loan repayment tenure that you can possibly achieve.
- Read the Loan Agreement
Though you will be informed about home loan details and its effects, you need to read through the loan agreement to understand its impact. Some of the factors to keep in mind are:
- Pre-payment charges, maximum loan quantum.
- Terms and conditions, missing equated monthly instalments.
- Processing Charges and Documents
Consultation services with bank comes at a nominal fee, which is a small percentage of the home loan applied for. It is essential to keep track of all overhead charges. Here are the documents required:
- Last three month’s salary and bank statements
- Copy of PAN card, address proof, IT returns etc.
- Arriving at an EMI
Until the home loan is totally paid off, you need to pay few instalments. Parameters when narrowing EMI that you can comfortably pay are:
- Current sources of income, plans for savings or expenses.
- Arranging resources to lessen the burden of EMI to repayment tenure.
- Loan Sanctioned
At last when you are through with the home loan, you can relax, as funds to purchase the house would be now arranged.
- The bank will take care of any payments to the developer that meet the home loan criteria.
- Move into the house! Keep calm and be happy, it’s your home.