How To Select The Right Housing Loan Lender?
If it could be answered in a single statement, then the right housing loan lender will be the one who can package the loan suitably for you. Yet to be fair, the lender doesn’t really matter unless they can make a perfect home loan offer with the 3 right factors. The factors are:
The home loan interest rates have to be cost efficient
This is the first factor that borrowers consider while selecting a bank or a finance company as a lender. The equation is simple. Once you borrow the money to pay the previous house owner or builder, the principal amount won’t change, neither would the tenure. So, you want to optimize the home loan interest rates. For most borrowers, the right lender is all about the lowest interest rates. However, there is certainly more to it than just home loan rates.
The house loan has to suit your fiscal needs
If you are like most borrowers, you believe that the best home loan in India is the one with the lowest interest rates. Financially speaking, it can be true. Though, if it is not packaged right; it can become the toughest one to repay too. So, you need to consider the home loans in India from a holistic perspective. When you meet the home loan eligibility criteria and submit the required documents, the potential lenders have a reasonable idea about your finances – assets, savings, liabilities, income, etc. So, a smart housing finance company will make an offer that you can afford individually. It should lead to a home loan with lower EMIs that you can afford to pay. Therefore, along with affordable interest rates, the lender should offer a suitable tenure, repayment option, and type of interest rate too.
The home loan should remain manageable
The home loan lenders should offer ECS to transfer funds, simplified terms and conditions document and lower prepayment charges on fixed interest loans. The borrowers will benefit from these simple details. A right lender will be able to support you for the entire loan tenure of 20-30 years. The importance of this factor cannot be overstated. The right lender should also okay the top-up loan for renovation and offer suitable re-structuring, if required. This support goes a long way in retaining the borrower for a long term.
A housing finance lender who prioritizes borrowers is the right lender for you. You cannot fully depend on the home loan rates to help you to identify it;nevertheless, with a holistic look, you will be able to find the right lender for sure.
