We all dream of living in well-structured big homes with all amenities at our disposal, but what comes as a barrier is the cash required to fulfil this fantasy. Home loans come as a relief for many, if and only if you manage to grab the best in business. Here are few tips that will help you pick up the right lender.
Pre-finalize the property before you borrow
Lenders out there are in numbers, and all of them have their specific schemes, which are suitable for different properties. Some finance for a fully furnished home, while others take into account the ones under construction. You should know beforehand, which category your desired property falls unto and what lender options you have at your disposal. This will help you get the best rates with an easy approval.
Make sure you fit the criteria
Your monthly income, credit card limit and past transactions play a pivotal role in determining the amount of cash you can borrow from the bank. Different banks have different eligibility criteria requirements, and one can extract maximum finance if their records are notable, to say the least.
Interest rate – Floating or fixed?
There’s always confusion when it comes to choosing between fixed and floating interest rate. On one hand, the floating rate depends on the market interest rate and it’s important for you to make sure that this particular rate has gone down at least once in the last couple of years. On the other hand, the fixed interest rate is believed to be constant all through the term, although it may be variable after some time, which directly extends the loan term and the amount to be paid back in installments. Make sure you clear all the doubts with your lender before finalizing the deal.
Are there any hidden charges?
Except for the bank processing fees and the transaction charges, there should be nothing interfering with your pocket. Usually the rate of interest is shown to be a specific percentage, but it turns out to be a large amount at the time of loan sanctioning. Be frank with your lender and base your decisions on solid facts rather than deceptive words.
Know your lender’s credentials
You don’t want to be in the wrong hands at the right time. Be well informed about who you are dealing with and how well their past transactions have been. Make an online comparison, take the word of mouth from your close ones and make sure the lender you are relying upon, fits the requirement perfectly.