Buying property in Mumbai is quite a big financial and emotional decision, so make sure that you are considering every detail, big and small before investing your hard-earned money. When applying for a loan, the administrative and application process may confuse us all, so it is better to research and be informed about the processes and the current interest rates in the market so that we select a plan that helps us optimize our current resources to buy our dream home! Here are 3 things to consider before applying for a home loan for that dream luxury apartment in Mumbai!
1. Before you fixate on a particular home loan plan, you must compare the different loan products that are being offered by various banks and their subsidiaries. With greater ease of access as this information is readily available on the internet, researching your home loans have become simpler. Making an informed decision after considering various EMI rates, home loan rates, processing fees, and other hidden charges can help you get a deal on your home loan as flats in Mumbai can get very expensive so getting an economical home loan can get you closer to your dream home! Use an online EMI calculator to compare different EMI options offered by your bank to select one that suits your needs. For young professionals, Step UP Loans with low EMIs in the beginning to higher EMIs when they have a higher salary have made it easier for them to invest in properties.
2. Your credit score is an important indication of the nature of your home loan as it is linked to the interest you pay on your home loan. If your CIBIL score is more than 750, your bank will reserve the best interest rates on the bank’s housing loan options, for you. A CIBIL score is a 3 digit numeric summary of your credit history. If you are below 750, then you have to pay a marginally higher rate of interest. CIBIL offers one free report a year to their customers so you can check yours before you apply for a home loan. A cheaper loan enables you to buy a more lavish property so make sure to check your CIBIL score before home loan negotiations. Therefore checking your credit score for a home loan is an important prerequisite.
3. Deciding tenure is also important when considering a home loan. Understanding your financial capacity is key when deciding on this. Using a home loan calculator easily available online can ease the loan process. Most people end up paying high EMIs as they justify it by predicting that their annual income will also rise steadily. However, this may not hold, so calculating your income to a realistic standard can help your home loan process. Even though these financial institutions decide the interest rate from a minimum to a maximum range, the rate will ultimately depend on your financial capacity as a borrower. By adding your spouse or any other relative as your co-borrower, you can increase your home loan eligibility by combining your income with theirs.