Building your home is one of the best feelings you can have in this world. Besides making you feel amazing, this is also stressful. As it is a once-in-a-lifetime decision for many, ensure to make it wisely after considering all the crucial aspects. Ensure to conduct tremendous planning because going ahead without proper planning can be extremely draining both financially and emotionally.
The housing finance sector has always been a fast lane, and day by day, this sector is booming. Investing in a home requires a massive amount of sum, which is something not most can have ready in their hand. In these scenarios, exploring feasible options in the form of loans like the NAVI Home Loan, Canfin Home Loan, SBI home loan, Axis home loan, and HDFC home loan is one of the best solutions.
Most HFCs like Navi home loan and Canfin home loan offer a home loan which can be of high assistance when requiring the financial need for funds for purchasing a home. With their beneficial and lucrative home loan offerings come other privileges like simple monthly instalments, higher repayments, and others. However, before applying for a home loan, we must be careful of certain factors which assist in taking better and more informed decisions.
Go through a few of the crucial factors listed below that you must consider before availing a home loan –
Check out other important credit option alternatives – Many financial institutions like banks and HFCs offer home loans. So, comparing a few of the crucial factors like the home loan rate of interest, kinds of interest rates, i.e., floating or fixed, repayment loan tenure and monthly EMIs, can provide you with a clear idea. Doing so assists you in selecting the best credit option as per your need. Upgrade your home with innovative projects and concepts from Homecreatives.
Check out if you are eligible for the PMAY (Pradhan Mantri Awas Yojana Urban) scheme – PMAY U (Pradhan Mantri Awas Yojana Urban) was introduced in 2015 by the Indian Government as a measure or initiative to offer affordable housing to all in India. This is a credit-linked subsidy plan, and the beneficiaries, as per the scheme, avail of an interest subsidy or measure if eligible according to the Indian Government listed norms. To avail of this interest subsidy, you must initially check out if you are eligible for it and if yes, you are, then you must look for the perfect or suitable lenders who are registered under this specific scheme so that you can avail yourself of the benefits of this scheme.
Check out your credit profile –
Your credit score in your credit report is one of the major parameters factored in by lenders when granting you any loan, may it be a personal loan or a home loan. If you are thinking of taking up a home loan, your credit score must be the factor that you must initially consider checking and rectifying, as based on your credit score, most lenders decide your loan amount and home loan interest rate. Maintaining a strong credit score of 750 and above can allow you to get the benefits of the home loan you are looking for. For a strong credit score of 750 and above, all you must do is pay all your loan EMIs, and credit card bills on time, maintain a credit utilization ratio of within 30 per cent, maintain a balanced credit mix between secured and unsecured credit options, keep a close watch on your co-signed or guaranteed accounts for their timely repayments, and ensure timely review your credit score for any error, discrepancy, or mistake. If in case of any error, mistake, or discrepancy, instantly report the concerned credit bureau or lender for correction. Instant reporting can automatically increase your credit score. Thus, you see your credit score is built based on your past behaviour with credit. Having good past credit behaviour allows you to maintain a strong credit score, which thereby enhances your chances of availing yourself of a home loan approval.
Also Check: Canfin Home Loan
Rate of interest – The interest rate of a loan is one of the major parameters that determine your loan EMI. While applying for a home loan, you must ensure to compare the home loan interest rate offered by different lenders for your credit profile. Your score and monthly income are the major keys that usually determine your home loan interest rate. You must also be aware that there are 2 kinds of rates of interest, namely – fixed and floating.
Special offers for your home – To help you in your home journey, financial institutes provide you with a lot of offerings. These offers may be extremely beneficial and lucrative when availing home loan. Offers on processing charges and other fees are a few of the things which can assist you in lowering your thorough borrowing cost.
Top-up option – Most HFCs and lenders offer lucrative top-up schemes. When you choose any financial partner, ensure to check for schemes available for top-up post your home loan is granted. A top-up scheme is additional loan proceeds that you can take up against your existing home loan. Major advantages of a top-up option are that the process is extremely hassle-free, and fast and minimal documents are required. Top up on a home loan gets you funds at a better rate of interest than unsecured loan options like business loans or personal loans. You can take up this top-up option to meet your personal needs like wedding expenditures, renovation, business expansion and financing your child’s marriage or higher education costs.
Down payment – Usually, when you take up a home loan, you must pay a part of your overall home cost, which is called a down payment. This is ideally 20 to 30 per cent. The remaining amount is met by the lender and converted into monthly instalments. If you hold a few extra savings or investments not linked to your financial goals, then you can use them to enhance your down payment and get the loan just for the shortfall amount. Doing so not just allows you to save a lot on the interest component but also enhances your chances of availing of a home loan as this move lowers the lender’s credit risk and boosts their confidence in you.
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