Smart Tips To Avail The Best Home Loans

  • Added:
    Jul 25, 2014
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Smart Tips To Avail The Best Home Loans Photo by Aishwarya Mahurkar

When you are in a market for home loans, you need to make smart choices. You cannot rush into decisions. There are several aspects of your professional, personal and financial life that will come into play as you opt for a housing loan. The best home loans in India cannot be selected randomly or by mere luck. It needs a more studied approach for the home loan eligibility process as well.

Finalize a property meticulously

This is the most challenging part of the entire process. Most borrowers want to buy a property based on their personal requirements. However, your financial life plays a vital role as you need to select a property that you can afford to pay EMIs for comfortably. Most housing finance companies select the candidate who can spare about 30% to 40% of their in-hand income as housing loan EMIs without trouble. So, selecting the property that you cannot pay for will be unwise. You will need to consider that the principal amount of the home loan will include 80% to 85% of the property cost, legal charges, processing charges, home loan insurance plan, service taxes and allied fees. Hence, property selection will depend upon the likely principal amount, EMIs you can afford on a monthly basis and your credit score report. 

Ensure eligibility criteria

When you apply for a home loan at any housing finance company in India, you must make sure that you meet their basic eligibility criteria in order to receive a decent loan offer. This is much easier nowadays as these details are straightforwardly available online. This is important, because a home loan application rejection becomes a permanent part of your credit history. You can compare the home loan offers online, check their websites for details and visit the branch office to understand all that you need to know. However, you should apply for home loan in a particular housing finance company when you believe that you can meet their criteria and get an acceptable house loan offer. 

Watch out for all the possible charges

A lot of people are relieved once they get a decent house loan offer. Hence, most of them do not go through the terms and conditions of the home loan to vet it out. Although, you can’t be certain about the graph of your financialsituation for the next 20 to 30 years, you need to know about the prepayment charges as well as the home loan default fees. You also need to understand the consequences of the financial agreement that you are getting into. So, do not enter into this vital contract blind-sided. The best home loans in India are selected with close attention to detail. Thus, you should read thoroughly before you sign on the dotted line.

Author's Profile

Aishwarya Mahurkar is an experienced writer concerning the finance industry. Her articles help in informing her readers of the best home loans in India and the apply for a home loan.

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