Buying a home in most instances is a one time decision. It definitively calls for a lot of research, study and very importantly, CAUTION especially because of the huge amount involved. When you intend to buy a house without making an outright payment, the best option is to go for a Home Loan.
There are several Banks and private lending institutions which offer Home Loans and choosing the right lender can be confusing. Given below are a few tips to pick the authentic lender from the existing clutter.
Preparing for a long association with the lender
When you go for a Home Loan, it is extremely important to realize that you will be glued to your lender as long as your loan tenure continues, maybe for a few decades. Agreed, you can transfer your loan account to another Bank but it involves the repetition of the various documentation process. Therefore, it’s better to choose the right lender the very first time.
Home Loan interest rate
It comes in two forms viz., ‘fixed’ and ‘floating’. While the former remains unchanged during the entire loan tenure, the latter may vary owing to reasons such as change in Government’s policy decisions etc. An authentic lender will educate and advice you to choose the one appropriate for you.
Recommendation by the builder
A reputed builder can offer a choice of Banks and private lending institutions. If as a borrower you opt for the one recommended by your builder, you may stand to gain by getting a waiver on certain pre-loan charges. Further, there will be a direct coordination between your lender and the builder during your loan tenure and the process of disbursal to the builder can be smooth. .
Security of your documents submitted
The lender asks for some of your original documents and keeps them till the end of the loan tenure. Therefore, it is important that your lender is authentic.
Processing fees
After establishing the eligibility of the borrower through the Home Loan eligibility calculator, the documentation process begins. At this point, it is in the interest of the borrower to know the amount of processing fees to be paid to the lender. Only an authentic lender will quote the reasonable amount.
Foreclosure charges
During the loan tenure, you may decide to pay back the principal loan amount and close the Housing Loan. An authentic lender will reveal the conditions of foreclosure right in the beginning of the deal.
When you dream of owning a home, you have home loans to add wings to it. Do make sure that the source of your home loan is authentic, without the need to regret later.
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