If you are planning to buy a house in the near future, now is the time to plan your finances. Investing in residential real estate has become a priority for today’s generation which beliefs in planning ahead. There is an upward shift in the real estate market as more and more people are showing interest in owning a property rather than renting it. Rise in demand for flat and an independent house is backed by the banking sector with beneficial and lucrative loan opportunities. A home loan is a great financial assistance for those who do not want to liquidate their savings or short on cash. Plus you can own a house by customizable loan repayment tenure and monthly installments.
However, consider the below parameters that play an important role while applying for home loans:
Credit score
First and foremost, check your credit score also now as your CIBIL score. It is recommended to check and correct your credit score as soon as you anticipate buying a house. Early identification of your score would help you to correct any errors and provide you ample of time to improve it before the final deal. Rectification could be required with respect to late payments, incorrect credit limits, etc. A single late payment in the past could drop your credit score. Hence, a better credit score will position you in a better place when it comes to interest rates.
Your income and down payment
Based on the location and your work, every lender sets minimum income criteria. While having the ideal savings and aiming at affordability plays an important role, it is your employment status which is a major contributing parameter while applying for home loans. Home loans are mostly available for the duration of up to 20 years. Hence, your age, income and the remaining number of years in your job could alter the loan amount considerably. Along with the current income, your savings will help in identifying the affordable down payment which would further help to ease down on the monthly EMIs.
Market survey
The growth of the economy has supported the growth of the banking industry. Many private and government banks are offering various types of home loans for buyers. Every bank has a target for its employees because of which minimum details are provided to the borrowers. Hence, it is even more important to do the market survey, read the terms and conditions carefully and do not hurry while applying for the home loan. Compare the rate of interests of different banks. Parallel to this look for banks with a faster loan approval process to avoid any last-minute delays or penalties of late payment. Identify the borrowing costs charged by the bank like processing fees, service tax, etc to make sure only the RBI approved charges are being levied.
Applying for a home loan could sound like an easy process; however, for smoother repayment of loan it is important to keep in mind the above parameters to avoid any chaos at the later stage. If you are planning to buy a house with affordable prices, visit the Exotic Grandeur office for assistance.
