Maintain a good credit score, research your options thoroughly, choose suitable EMIs, and more: here are the top 5 things you need to keep in mind before applying for a home loan.
- 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 properties in Mumbai can get very expensive so getting an economical home loan can get you closer to your dream home!
- Using a home loan calculator and using competitive market rate interests, you as a borrower can fight for better home loan rates. Even though these financial institutions decide the interest rate from a minimum to a maximum ange, 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.
- Understanding your financial capacity is key when deciding to invest in property. 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.
- 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 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.
- Understanding the kind of home loan rates is important as builders in Mumbai may direct their customers to a loan that doesn’t suit them. There is either a fixed interest rate or a floating one or a combination of both for a limited period. It is beneficial for you to know the trends in home loan rates as recently they have been showing a downward trend.