You Are About to Take a Home Loan... So Keep These 5 Things in Mind
Buying a new house always requires a huge amount of money and for this we sometimes have to take a loan as well. If you want to buy a house by taking mortgage, then there are some things to keep in mind. These things should be kept in mind while taking a home loan from the bank.
A good life requires a good house, and building a house always requires a lot of money. Most buyers will have to finance it.
Home loan is a great way to get financial help, home loan can help you realize your dream of owning a home and the advantage of home loan is that it also gives you tax savings.
But before taking a home loan, you should know some important things about home loan. So let's know how to take a home loan, what things should be kept in mind while taking a home loan?
Always keep these 5 things in mind while taking a home loan.
So, if you are looking for a way to buy a home by taking a home loan, there are a few things you should keep in mind.
1. Your CIBIL score should be good
A good CIBIL score, ideally above 750, will ease the way for the borrower to avail the loan. CIBIL score helps in flexible loan terms and also affects the interest rate.
So, if you are going to take a home loan, it is advisable to make disciplined cash transfers to pay off all your existing loans and improve your CIBIL score.
2. All documents are available
While applying for a home loan, the borrower needs to submit certain documents which include proof of income, bank statements and property documents.
Based on this documentary evidence, the lender approves the application in principle. The loan will get the final approval only after positive verification of the asset.
3. Advance Payment
Generally, banks lend only a part of the total property value. Generally, banks or lending financial institutions accept only 75 to 90 per cent of the value of the property as loan.
Considering the eligibility of the borrower and other factors. The remaining amount should be paid as down payment by the borrower at the time of purchase.
4. EMI Management
A sudden drop in income due to market fluctuations, illness or other reasons affects the borrower's ability to repay. Therefore, it is necessary to prepare a plan B to repay the loan at the time of taking the loan.
To secure the contribution it is advisable to have a fixed amount which should be the EMI for at least 6 months. This money will help you in an emergency and you can repay your loan without taking a fresh loan from anyone.
5. Loan Terms and Conditions
Before finalizing the home loan, it is important to familiarize yourself with all the terms and conditions associated with your loan. Since the EMI rate is not high, you can consider the loan as a good one.
But the lender may charge some hidden fees or may charge a higher amount as processing fee. Hence borrowers should look at all the options available in the market to choose the best option.
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