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15 things to keep in mind while applying for a home loan in India?

10 min read
15 tips before you take home loan
Once a lifetime decision is taken, we have to take a home once with the rising prices of the property and the higher interest rate regime. Thus, choosing the right home loan product on the market is very important for us to avoid any surprises later.

Before you take a new home loan there are few factors that need to consider just refer them before you go and pt for home loan

Good research: Do not go by what your debt agent says. You can do your own research on the best words available on the market.

Park your additional funds: Two banks have a facility that allows borrowers to keep their additional funds in credit accounts.

Learn floating or fixed rates: There are two types of interest rates offered by banks: floating and sustainable interests. The floating interest rate is linked to the market. It moves along the base rate. Fixed interest fixed for a few months defined in the loan agreement. In many cases, it is important to understand that floating rates are much cheaper than fixed rates in the long run.

Understand the foreclosure norms: Recently, the RBI banned foreclosure fines. So make sure that you do not have to pay any extra when confiscating your loan.

Save in advance: If you can save up to Rs 1 lakh in the current financial year, do not use the vacation leave abroad. Instead, use your loan in advance.

Compare Processing Fees: Whether it is for fresh loans or for balance transfer. Please inquire in all banks before you finish. Explore for more banks to home loan balance transfer

Read the documents: Read everything written in the loan agreement before you sign on the dotted line. Learning terms and conditions is very important.

Increase the bridge funds: Every borrower must pay some money in his own pocket while buying each house. Try to pay the payment down as much as possible. This reduces your interest in the Principal.

Downpayment – You will have to arrange 20% ( approximate)of the property value on your own (downpayment amount). There are different ways to raise money for a downpayment. You can borrow from friends and family and take a loan against your other investments, cash or property or any other assets or you can take a personal loan. I suggest you go through this guide home page down payment for downpayment down payment and mean different ways of making the mode cheaper than the other.

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Compare Interest Rates – Nowadays you can easily compare interest rates through various online portals like mymoneykarma. You need to select a low-interest rate.
Apply for Debt – After the low-interest rates are available, submit a loan application to the relevant bank including documents required for home loans.

Appraisal and Discipline – After you submit the loan application to the bank, the bank will study your papers and credit it. After the loan agreement is signed, the loan amount will be distributed.

Accessibility check. Your homeowners’ income should not be more than 30%. Any higher payment will reduce your savings capacity. It also depends on your home budget. If your debt EMI is capable of affecting savings for your other goals, you should change your goal.

Job or income stability: Make sure you have a good bank balance and a steady job to care for a good income and EMIs of debt for at least a year in case of a red slip. Many people know that their debt could not be repaid if they do not have a job loss suddenly leading to the NPA.

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