Looking to avail a house loan? Here are few things to consider

Every year many people aspire to buy their dream home. It’s because in today's high inflation times, it's difficult to stay on rented home else due to reasons like family expansion, more and better living space, etc. However, the real estate prices are skyrocketing high it’s nearly impossible to fund the dream home with the little savings you do over the years. For this, you need proper planning and borrow finance. House loan is the ideal solution that will help you tide over the financial situation. Today, leading banks and housing finance companies are willing to offer home loans with attractive interest rates and longer repayment tenures.

When the borrowers plan to buy their dream home there are a lot of aspects in the  mind such as property location, its value, vicinity, and the safety and  most importantly which bank or firm they should choose to finance their home based on interest rates, reputation, principal amount to borrow, processing fee, loan tenure, repayment options, etc.

Indians are typically adapted as such that they would hit the submit button on the house loan application form with the first loan lending company or bank that falls within their range of interest rates and principal amount. However, this is not correct. Instead, there are some of the finest online aggregator sites that would let you compare apple-to-apple of the housing loan product. You can compare the interest rate, processing fee, principal amount, calculate EMIs, loan tenure, and other fees applied.  You can get a customized house loan in india solution that will not only meet your housing requirement but would also fit into your budget.

A suitable comparison online can help you judge on the best home loan offers in terms of benefits and features offered, the interest rate, processing fee, and other important parameters. The decision has to be based on your regular income flow, risk appetite, and your retiring age. Always decide on 'how much we can afford is how much we can borrow'

Before you zero in on a particular lender, you have to assess your affordability as well. Banks or finance companies offer loan up to 80% of the agreement value. Also, they will set their own criteria under which you have to show the margin money of around 15-20% so that your loan gets approved uninterrupted and smoothly.

Lenders need to see your repayment capability as well, so they will assess your regular monthly income flow, age, number of depends, existing debts and credit score. Your good credit score, strong income source, and job/business stability, additional income source such as spouse/ parents earning can help you yield low-interest rate deal.  A good credit score display you loan repaying capacity on time and you’re a responsible citizen.

Make sure you have proper savings for margin money of 15-20% towards the down payment and little extra to tide over situations like job loss, health risk, and other perils when they are no income source. This shows your well-preparedness towards your loan repayment and you'll have more chances of getting your Apnapaisa house loan approved.

About This Author

Anushka Kapoor ApnaPaisa helps you get the best financial solutions Joined: March 12th, 2019