Questions to Ask Before Opting for a Housing Loan
Building your own nest in a prime location of your city could be an expensive job! However, you can easily realise the vision of having your own dream home into reality by applying for a housing loan.
Once you have finalized a property of your choice, the next thing that follows is approaching a creditor and requesting a housing loan.
Although availing a Home Loan seems to be a tricky affair, it won’t be such an issue if you consider some things and keep it in mind while applying one.
- Do you have Home Loan eligibility?
If you have the required Home Loan eligibility as per the rulebook of a lender, it will become easier for you to avail a Housing Loan. Being an Indian citizen in the age group of 25-58 years, having a stable income and job history, good credit score and more are the basic House Loan eligibility elements.
- Do you have the affordability?
Before applying for a Housing Loan, it should be your prime duty to check whether the down payments and EMIs are under your budget or not? In simple words, would you be able to afford it or not?
- Have you compared the Home Loan interest rates?
Any good Home Loan expert or guide will always suggest you compare all offers on Home Loan interest rates and not to finalize the first lender. Yes, go to a third-party website and compare the Housing Loan interest rates offers of all service providers to grab the best deal. These interest rates comparisons are available on third-party websites free of cost.
- Loan tenor
When it comes to grasping the concept of Home Loans, you should know that a tenor of the Home Loan is of prime value. If you avail a longer tenor, you will pay a smaller EMI and manage your finances better, but you will also have to manage higher interest expenses. A shorter Home Loan tenor may lead you paying higher EMIs, but it will also help you pay a reduced loan interest.
- What about the CIBIL Score?
If you don’t have a healthy credit score, either your Home Loan won’t be approved or even if it approves, it will attract a higher rate of interest. Thus, before you make your mind to apply for an online Home Loan application, make sure to maintain a high CIBIL score. Having a well-maintained CIBIL Score above 750+ or more should help you grab a better deal on your Home Loan interest rates, making it easier to manage during its tenor.
- Do read all terms and conditions before you sign the loan
Make it a point to always go through the fine prints of your loan agreement that you don’t have to face any further issues once your loan is in progress.
The Bottom Line
You should be able to manage your housing loan easily if you consider the discussed points. Once you have assessed the things at your end, apply for an online housing loan and be on your way to live in your own dream home. Best of luck!