Buying a home is by no means a small feat. The aspiration of having an own home in this fast approaching festive season is paramount for home-buyers today due to several offerings. Offerings such as lower home loan interest rates, waiver of processing fees, among others, are a bargain for individuals seeking for home in their budget. But choosing the right housing loan perfectly suited for you can be quite a daunting task as currently, there are a number of financial institutions and banks operating in home loan provision space.
Choosing the right lender to avail your home loan requires a thorough research and understanding. As a home loan borrower, there is no shortage of banks and financial institutions that can sanction home loans at a great bargain. But it is vital to make sure the financial lender meets your needs and is flexible enough to offer you the best home loan scheme. So if you are thinking how to apply for a home loan, then understanding the best option for you and shortlisting it is of paramount value. Here are a few important factors that can help you pick the best housing loan:
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Interest Rate
Home loan interest rate is one of the significant factors that can help decide the best home loan available for any home buyer. But it is imperative to be diligent with choice as going in blind faith for the cheapest offer can be quite problematic. Comparing different rates and other aspects can come quite handy for home buyers.
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Turnaround Time
The time taken to process, sanction and disburse a home loan is different for different banks. It is essential to check the processing and disbursal speed of all the banks. It is quite beneficial to choose a lender with a strong system and good after-sales service.
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Home Loan Criteria
Banks and financial institutions follow a process prior to sanctioning home loan to home buyers. This process includes details like borrower’s age, job profile, employment stability and credit history. The process / criteria may vary from lender to lender sometimes.
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Credit Score
Banks are quite strict in lending home loans to customers. Banks will assess your income and your history of repayment track record and will factor on these parameters to provide the loan. A good credit score implies that you are a responsible candidate as a borrower and can repay your loan. Keep a check on your credit score and take adequate measures to try and improve them.
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Services Provided
Availing a loan from bank or financial institution assists you to enter into a long term relationship with the lender. Hence it is important to evaluate the services offered by them such as tax certificates, provisional amortisation, part closure services and reduction in the tenure / EMI after partial repayment.
