Important Things To Keep In Mind While Applying For A Home Loan
Buying your dream home is a momentous task. Being a significant milestone, availing a Home Loan calls for a thorough research before availing the funds from any lender. There are several apps available on which you can apply for Home Loan online. These home loan apps may require certain details from you.
There are numerous Home Loan app online that offer to assist you by providing the required funds with the right documents. However, not all apps are equally efficient when it comes to fulfilling procedures and tracking the small, yet significant details related to your Home Loan.
Also, there is a long list of things that you might want to know while you apply for a Home Loan. To make it easier for you, we have curated a small checklist below to help you ensure you have covered all the important details.
1) Fresh Home Loan or Home Loan Balance Transfer
You can start with this question. Be clear about what you need – a fresh Home Loan or A Balance Transfer of your existing Home Loan. Home Loan Balance Transfer means you transfer the remaining amount of your existing Home Loan to another bank/NBFC.
2) Analyzing your budget & income
Before applying for Home Loan, it is wise to come up with a rough estimate of your budget. This will help you find a suitable property in your range of budget. Now, you should also try and analyses your income and plan how your finances will be tackled. Your salary gets spent on several things. You must ensure that there is enough amount remaining to pay an EMI; AFTER fulfilling your basic needs. Only after thorough planning you can ensure that you would be stably paying your EMIs for Home Loan on time.
3) Identifying the property you need
Before approaching any lenders to apply for home loan online, it is imperative that you identify the property that you would want to buy. This is because you would be certain about the amount of loan you would need to borrow. Once you are sure of the amount, you can start looking for suitable lenders and apply for Home Loan.
4) Down payment for your Home Loan
100% of the price of your home cannot be sanctioned as your loan amount. Each lender has its own predefined limit of sanctioning the loan. Hence the down payment of your home should be in-sync with the loan amount that you might need. Also, paying your down payment amount will reassure the buyer about your interest in the property.
5) Finding a suitable Home Loan lender
There are multiple Home Loan apps that you can look at for a Home Loan. Bajaj Finserv, HDFC Home Loan, Money Tap are to name a few. Interest rates for your home loan may vary from lender to lender. You must see which lender has the easiest eligibility criteria to fulfill & has interest rate which could be feasible for you.
6) Check your Credit Health Report
To avail a Home Loan, you must have a healthy credit history. A credit score of 750 and above is considered to be good for availing a Home Loan. It would help if you get hold of your credit health report and improvise on it. Online home loan apps strictly check your credit report before approving your home loan.
7) Checking the Type of Interest Rate
Interest rates for home loan are of two kinds Fixed or Floating. If it is of the fixed type, your interest rate will be uniform throughout your loan tenure. If it is floating, your interest may decrease in sync with the variations in the economy and the money market. Ideally, you might want to opt for a floating interest rate type.
8) Eligibility check for Home Loan
You will be thoroughly scrutinized by your lender to check if you are entirely eligible to avail funds from them. Parameters like your age, salary, official paperwork are important and are taken into consideration very seriously. Your personal documents also have to be kept ready to be submitted in order to get speedy approval for your Home Loan. Make sure you confirm with the lender all the documents that are needed well in advance so that you get time to collect them.
Thus, if you are looking for a Home Loan, please consider the above-mentioned details as important points in your checklist. You would have most of your work covered by checking out items in this list.