Have you been thinking about getting a loan from a lender? If you have, then it is important to ask questions. In this blog post, we will discuss 10 of the most important ones that every borrower should ask their potential lenders. Let us take a look at each of these in more detail.
- What kinds of home loans do you provide?
The sort of loans your loan provider offers is the first thing to understand when meeting with them. When you know what you are looking for, it is easier to narrow down your options.
This question is important because it will help you determine if the lender provides the type of loan that you are looking for. Some lenders only offer certain types of loans, while others offer a variety of options. It is also important to ask about the specifics of each loan.
There are different types of home loans that borrowers can get. The most popular ones which Shubham provides are home loans, home construction loans loan transfers and Loan Against Property. It is important to know what each one entails so you can make the best decision for your unique financial situation.
Your loan provider should be able to explain all of the different types of loans they offer in detail. If they cannot or if they try to push a certain type of loan on you, it is best to move on and find someone else who will be more helpful.
- What is the down payment requirement?
The down payment requirement is the amount of money that a borrower needs to put towards the purchase of a home. It usually starts at 10% of the total cost of the home.
The down payment requirements for a loan should be enquired about by any first-time homebuyer. This will show you how much money you will need to save in order to qualify for your selected loan, or whether you should look for a different lender if you cannot meet the down payment requirement.
It is important for borrowers to ask about the down payment requirements before they decide on a loan because this is one of the biggest factors that can determine whether you will be able to afford your home or not.
- How to calculate my home loan EMI?
The monthly payment on your loan, often known as the EMI, is the amount of money you pay every month for your loan. The interest and principal on the loan are included.
It is important for borrowers to ask about monthly loan payments because this is how they will know how much they need to budget for each month.
The last thing any first-time homebuyer wants is to end up in a situation where they are unable to pay their EMI because it is too expensive or takes longer than expected to settle. If you enquire about the monthly payments, you may start a discussion with your lender about making any changes.
The best way to find out about your Home Loan EMI is by using a home loan EMI calculator. Shubham’s EMI calculator may be of assistance to you.
- What is the maximum tenure for my home loan?
The maximum tenure for a home loan is the length of time that a customer may take to pay off their debt. This can be different for different lenders. It is crucial for borrowers to know about the tenure because it will allow them to calculate how long they will need to make monthly payments.
- What if something happens to me and my loan is not completely paid?
This is another thing you may enquire about during your search for a lender. This will ensure that your loved ones are not left with the burden of repaying your loan if something happens to you.
Your home loan should come with some form of Life Insurance cover for the amount of your loan and its duration. . This is a very important question to ask because it will ensure that your loved ones are not left with a huge amount of debt to pay if something happens to you.
Enquire about home loan Life Insurance cover from your lender and make sure that you understand the terms and conditions before signing any agreement. We have many home loan experts at Shubham. If you have any questions about home loans or Life Insurance cover, please do not hesitate to call us on 1800-258-2225.
- Should I choose a fixed or floating interest rate?
A pre-fixed interest rate home loan for a fixed duration has a known outflow for a specified length of time. At a fixed interest rate, you pay the same EMIs throughout your home loan tenure.
The interest rate in a floating rate loan fluctuates quarterly based on market rates, with the loan taking place for a specified duration. In a floating interest rate, EMIs might change over the tenure of your loan.
Always keep in mind that a floating interest rate is more beneficial. Because your Home Loan is likely to last for a long time, the interest rates are bound to fluctuate. Your lender should be able to offer you the benefit of making the choice of a floating interest rate.
To be sure of what type of interest you want for your home loan, discuss beforehand with your lender about the pros and cons and then decide which one goes best as per your needs.
Is there a penalty if I pay my home loan earlier?
While paying off your loan ahead of schedule may help you save money on interest, some lenders demand that you pay a prepayment penalty. This is generally the case with fixed-interest home loans. It is always a good idea to double-check with your lender before applying for a loan so you do not get into loss later. Also, enquire about the lender’s refinancing procedure to determine what you will have to do in the future if you want your loan modified entirely.
At Shubham Housing Finance, we do not charge any pre-payment fees. For more on this, reach out to one of our representatives.
- How long will it take for my home loan to get processed?
You may be in a situation where you need money right away. Alternatively, you might be in no rush and want to get your funds available for you when needed down the road.
In either case, we recommend asking about how quickly they can make funds available to ensure that whatever needs you have will be met without any unnecessary delays.
This question should be asked in order to set expectations on when the home loan will actually close. It is important to remember that home loans can take a while to finalize, and some lenders may have longer processing times than others.
When applying for a home loan, make sure that you always keep the lines of communication open. This will make sure you are comfortable with the lender you pick.
When and how often will I receive a Statement of Account for my loan?
Loan progress updates are regularly posted in order to give the borrower an idea of what they have left to pay on their loans. It must be given once a year, according to regulations. However, knowing over what channel you will receive these updates is helpful. It is good to know how often, and over what medium, you will be getting these updates. Will they be over the phone, email, or through the lender’s online portal? You can even form your own preference as to how and when these updates are sent and see if the lender is willing to meet your expectations.
Home loans are a big commitment and you want to be sure that if something does happen, your finances will remain in good standing.
Shubham keeps you updated with your progress with just a click on WhatsApp.
- How do I apply for PM subsidy for my home loan?
Another thing you might want to ask your lender is about the subsidy that you might be eligible for under the PMAY scheme.
Your lender must be able to provide you with the process to do it online or they might assign a representative who helps you with the same.
At Shubham, we help you to fulfill your dream by helping you with the Pradhan Mantri Awas Yojana- Credit Linked Subsidy Scheme(PMAY-CLSS).
How Shubham Can Help
The questions mentioned above are some of the most important questions that you should ask when getting a home loan.
If you are looking for a lender that will work with your needs, Shubham is the perfect fit. Shubham is in the market for 11+ years. With more than 1800 employees and over 100 offices, Shubham has by now helped beyond 55000 families to build a home of their own and turn the dream of owning a house into reality.
We want to make sure you have all of the details you need to feel secure about your loan choice and know what is going on at every step in the process. We provide regular updates on your loan status and work to ensure a smooth process for you.
We suggest that you visit our website in detail so that you have a full understanding of what is available to you before making any decisions. Our team is here to answer any questions that you may have, so please do give us a call.
If you're thinking about investing in property, you should carefully consider the investment property loan you choose.
Investment loans are a type of home loan that lets you buy a rental property.
Do you want to buy an investment property in Queensland?
Coronis Finance brokers can assist you in managing your loan application, selecting the right property, and determining the best type of home loan for you.
