Buying a house or investing in a home has to be one of the most amazing yet big decisions of your life, especially if it’s your first home. You may come across some questions in mind such as – ‘how would I afford it’ or ‘how to manage a home purchase’ amongst many more.
However, availing a Home Loan in India is a painlessly easy process. You just need to be aware of the technical aspects and what you are looking for.
You should also have a strong CIBIL Score, clean repayment history, a consistent employment history to be Home Loan ready and eligible. Also, utilizing a Home Loan interest calculator helps you know how much interest you would pay over the principal amount to help prepare even before availing the loan.
If you are preparing a home purchase, let’s provide you some simple tips for a smooth purchase!
Tip 1 – Always select the correct location
Before applying for a Home Loan, make sure that you have selected a home in the right location. You should not pick a location which puts you at stress while commuting to and from office. Also, ensuring that the locality is safe and basic amenities are within your reach is vital.
Tip 2 – Give a boost to your CIBIL score
The first thing that you lender will look at while assessing your Home Loan application is your CIBIL or Credit score. They won’t approve if it’s not higher. You can maintain your CIBIL Score by paying bills, existing loan EMIs, and credit card outstanding on time. Also, not maxing the credit card and maintaining a clean repayment history will brighten your chances of a Home Loan approval at a lower rate of interest.
Tip 3 – Shop around
Don’t finalize the first lender that you apply to! Rather shop around a bit by comparing all online Home Loan offers listed on a third-party website and then only finalize one as per your needs and affordability.
Tip 4 – Buy only what you can afford
Just because you are eligible for a Home Loan, it should not mean you can actually apply for the costliest house or avail a Home Loan more than your affordability. Always know that you always need some money to put as the Downpayment and also pay exact EMIs per month. Thus, before finalizing an offer, take the help of an online Home Loan interest calculator or Home Loan EMI calculator to know your financial appetite.
Tip 5 – Avail the right interest rates
Probably one of the most crucial steps for any Home Loan seeker – deciding which Home Loan interest rate to opt! Floating and fixed interest rates are in fashion – fixed rate makes your EMIs equal while a floating rate will have diverse EMIs each month. Fixed rate offer security laced with fewer saving alternatives while a floating rate may be less secure, but may provide more savings in the long run.
Tip 6 – There is no right time as such
When it comes to real estate properties and Home Loan interest rates, they don’t fluctuate much. Thus, there is nothing called a right time to buy a home on a Home Loan as such. Once you have finalized a good property in a safe location with an affordable rate of interest, you can always finalize the deal with your prospective online lender.
The bottom line
Now that you are well aware of the steps involved in a rightful home purchase especially on a Home Loan - assess your needs and apply for one online! Happy home purchase!