Smart Home Loan Tips for First-Time Home buyers

Going in for a home loan? Do some basic rudimentary research and try to get a loan that suits your needs perfectly. With so many new offers in the market from banks and financial institutions, you can really have your pick, because they are also competing to do business with good borrowers. Find a loan with the lowest outgo- do some research online, everything is now available at the click of a button, several websites are available where you can compare home loan policy rates, fees, etc.

Smart Home Loan Tips for First-Time Home buyers

Calculate the EMI, time period or the number of installments, processing fees and then compare and find a loan with the lowest outgo. Good and dependable customer service is very important, so choose an established and reputable lender, because you will be entering into a long term relationship with your lender. Find a lender who will process and disburse the loan in the shortest period and not make you run from pillar to post. Terms for foreclosure and early repayment should be made clear in case you decide to pay the amount at your earliest. [Read more…]

Tips to Choose the Right Lender for Your Home Loan

What is your priority while selecting a home loan lending bank? For most of us it is the rate of interest that matters. But it is really important to choose the right home loan lender as you would be connected for about 10-15 years, that is, until your entire loan is cleared. In that case, making a low interest rate your only criterion would not be a good idea. Other factors like proper disclosure of terms and conditions, responsiveness to your queries, etc. also play a major role.Tips to Choose the Right Lender for Your Home Loan

Given below are a few tips to help you choose the right lender:

Don’t Fall Trap to Low Interest Schemes- Nowadays a number of smaller lending companies are growing in the market. They offer unrealistically low rate of interests to their new customers and subsequently increase it in the name of increased cost of funds. You should check the credentials of such companies. It would be better to go for a company that has been in the lending business for quite sometime.

Don’t Apply to Several Banks at the Same Time- Maintaining a good CIBIL score is really important for negotiating a lower interest rate with the banks. However, if you apply at several banks at the same time, each such application can reduce your CIBIL score by 10 points which is not a good idea in the current market situation.

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RBI Eases Home Loan Norms to Support Affordable Housing Mission

RBI Eases Home Loan Norms to Support Affordable Housing MissionFor a middle class person, buying a home is like a dream come true. One has to start saving way before in order to be able to pay for the house. Home loans are efficient means of funding a property purchase. It also helps in long term budget planning and tax saving. Now that the home loan market has become organized, banks cater to every need of the home-seekers by offering easier plans and competitive interest rates.

Supporting the affordable housing policy of the government, RBI has recently eased the home loan norms for properties priced less than 10 lakhs. Till date, banks did not include the stamp duty and registration charges in the cost of the unit for the purpose of calculating loan to value ratio. However, RBI has now allowed the banks to include the registration charges, stamp duty and other documentation charges in the total cost of the property, if it costs less than 10 lakh. [Read more…]