A Home Loan is the best option when you don’t wish to purchase a house on outright purchase. Before you enter into a home loan deal, you need to keep certain key points in mind like the ones mentioned below so that you don’t regret later. After all it’s something which involves your life’s hard earned money.
Ensure that your EMI payment capacity is in place
You need to ensure that financially you are in a position to repay your loan amount every month without defaulting. If not, you may have to compromise with certain basic expenses on your personal and family fronts. So make sure that your EMI amount is within your capacity.
Do ensure that the loan tenure is comfortable for you
The younger you are, the more can be the repayment tenure you get after your home loan eligibility is established through the home loan eligibility calculator. However if you cross the age of 40 and apply for a home loan, you need to be careful because the loan tenure can be reduced drastically. This will increase your EMI amount which you have to be well prepared for.
Your loan interest type should be right for you
You need to wisely choose between ‘fixed’ and ‘floating’ interest rates. A fixed interest rate is obviously the one which runs constant all through the loan tenure. Floating interest rate may vary depending upon certain factors including those related to Government policies.
It’s important to read the fine print
You loan document may have certain hidden conditions that are inappropriate for you. It is extremely important to read the fine print and only after thorough understanding should you sign the documents. Ask questions to your lender whenever you are in doubt. Do not make hurried decisions.
You need to negotiate the home loan interest rate
Although home loan interest rates vary only in fractional numbers between lenders, there is every scope to negotiate the rate of interest. You must know that you can get the best deal by keeping all your mandatory documents intact.
Beware of fraudulent agents
There could be fraudulent agents posing as representatives of Banks approaching you to sell a home loan. Do not encourage them and communicate only with authorized representatives of Banks after confirming their identity.