Pointers to Remember when Planning to Take a Home Loan

If you have plans to buy a home, then you would do your research and consider various factors like the location of the property, its base price and GST, and so on, before coming to a decision. After all, your home would be a major investment. Similarly, you need to be proactive about doing your research and taking a few steps when trying to find the best housing loan in India to finance the property. A home loan is a commitment of about 15-25 years, and hence you need to plan for it systematically. 

Begin Accumulating Funds for a Down Payment

As you start searching for a house, you must also start to save money for its down payment. The down payment amount you need to pay ranges from 5% to 20% of the purchase price of the house, depending on your lender and the type of loan you have chosen. It is prudent to establish a proper monthly budget that helps you in saving enough money for the down payment.

Obtain a Copy of Your Credit Report

A lot of lenders will only approve your loan application if you have good credit scores. Hence, before applying for such a loan, you need to get a copy of your credit report. This will help you to discover how potential lenders shall view your credit profile. If your credit scores are too low then you need to take steps like paying off credit card bills and other debts to improve it, before applying for the loan. Banks especially have quite stringent requirements for the credit scores of the borrower, while many non-banking financial companies (NBFCs) are more likely to grant a loan to people without high credit scores or even proper credit history. 

Organize your Financial Records

As you apply for a home loan, you shall be required to provide certain important financial documents to the lender. These documents can range from salary slips for the last two months and Form 16 of the last year to business balance sheets and Copies of ITR with computation, depending on the documents relevant to your situation. Having the important documents assembled beforehand would help in expediting the processing of your loan application.

Finalize the Loan Tenure 

The tenure of your loan would directly impact your EMI payments. Hence, you must try to decide on a tenure that allows you to keep the EMI amount affordable, without having to pay too much as interest payments on the whole. 

Develop the Ability to Compare Offers

Not all home loan offers are the same. Even though the loans have the same interest rates, they may have different fees and terms. In addition to comparing multiple interest rates and repayment tenure, you should also compare the reputation and reliability of the lender. 

It is always better to go for Capri global housing finance or a loan offered by a similar, well-established NBFC so you can have the most hassle-free experience. Their excellent customer service and hassle-free loan processing eliminate borrowers running around that is mostly associated with taking home loans.