Buying a home for the first time can be exciting and at the same time a mind boggling, strenuous task. With a little effort and homework at the outset can help move things smoothly and help resolve any issues. Here are some tips to help and guide you to get a favorable loan sanctioned.
Plan according to your budget- You may love to buy an apartment on the tenth floor which is a 3BHK and very close to your office , but major part of your salary will go in paying an EMI every month, so this will not be feasible, hence choose wisely. Sieve out options that don’t suit you, this saves time and money. Moreover, it helps you manage your finances. Don’t get lost in a debt jungle; collect funds for your down payment. Banks give you a loan up to 80% to 85%, so the rest you have to manage.
Find out your loan eligibility beforehand- It will save you from surprises later on. Nowadays banks have their loan eligibility calculator available online. You just have to fill in a few pieces of information and it will tell you whether you can avail a loan or not.
Know the loan basics- Know the basics as to what documents are required to get a loan sanctioned, how things work, how long will it take for the disbursement, the banks legal scrutiny, etc.
Maintain a good credit score- This is the most important part of preparing yourself for a home loan. Pull out your credit report, which is very important for your loan approval, you can get your credit score through CIBIL, TransUnion, Equifax, Experian. A credit score of 700 to 750 is excellent to get your loan.
Get the best interest rate- Do not blindly choose a loan that is available on an apparently low interest rate. Compare the rates of different institutes and see what suits you the best. Go for a bank with your salary account it will be easier as your salary comes there and the bank knows you, the deductions can be directly made. Your loan will also get approved faster, but check the rates and benefits if any.
Differentiate between floating and fixed rate- Fixed rate remains the same till the end of the tenure. You will not get the benefit if the rates are reduced, so if your fixed rate is on a higher side, then opt for a floating rate.
Go for approved projects– Projects approved by banks show that property is legally clear and free from encumbrances. The bank will do a complete legal analysis so you need not bother. Also try to claim maximum tax benefits while filing your returns. You don’t know what to expect the learning curve can be steep, so basic knowledge and research can help you attain your goal.
Read More About……….Reasons Why Your Home Loan Application could be Rejected