Looking for houses is stressful enough and then to have to go through the loan hassles simply adds on to it. If you haven’t bought a property before then you probably feel lost already. With so many banks offering loans and with different schemes it can be really confusing. So how do you get out of this mess and look for something that is less complicated, meets your needs and doesn’t end up with a hole in your pocket?
You could plan to buy a big house or maybe just a small 1 BHK flat in Ahmedabad but that doesn’t really change the loan procedure. So here are a few tips to help you get a great deal on your home loan.
- Interest Rate
This happens to be one of the most important factors when you decide to secure a home loan. To some extent a lot of people believe this is the extra money that you have to pay on your purchase, and you really don’t want to be paying a lot of it. Look at the market and seek advice, sometimes the interest rates are lower during a particular period. You could also check with other lenders or if there are some special rates for women. Look for a fixed interest rate.
- Do your homework
Different people may have different means to measure or decide on home loans. Some lenders may agree to lend you more money as opposed to others based on your credit history or if you’ve been banking with them for a really long time. Use this opportunity to obtain the best interest rate possible and only then go for a home loan.
If you plan to buy a house anytime soon it’s the perfect time to start saving. Save every month or use your small investments to make the down payment for the house. This reduces the loan amount significantly, which automatically mean you will have to pay lesser interest. If you haven’t decided on which one to buy then this could help you to set a budget and decide how much are you capable of spending on your new home. You could decide to pay a certain % of the total amount as a down payment.
Before you start looking for property you could get in touch with the bank or lender and get yourself pre-qualified. This is a process through which the bank may go through your financial records and look into savings and other investments. Once they are convinced they will pre-qualify you for a home loan. This helps you to understand exactly how much amount the lender will be able to lend to you and you can accordingly decide a price range for your new house.
- One at a time
If you are planning to apply for a home loan anytime soon make sure you do not apply for a car loan or several credit cards simultaneously. This will affect your credit score and may affect your loan amount or the bank’s decision to give you any loan at all.