Here Are 6 Tips That Will Help You To Apply For Home Loan
Your decision to buy a new home is essentially accompanied by efforts to secure a home loan at optimal interest rates.
When you apply for home loan, you have to fulfill certain criteria of lending authority. Further, you need to balance your financial portfolio carefully to get a home loan swiftly.
The 6 proven tips that would be discussed over here would facilitate securing a home loan in a hassle-free manner.
The easy way to get a home loan is to remain conscious of the processes involved so that you can leverage them adequately.
1) Have an Unblemished Credit Score
State Bank of India offers home loan at the lowest interest of 8.35% p.a. But, you may be barred from availing this loan if your credit score is not satisfactory with bad debts and delayed payments featuring prominently.
Since you are eligible to get one base credit report free every year from top bureaus, you should get it beforehand and check for the discrepancy that might be an eyesore to prospective scrutinizers.
2) Build the Needful Portfolio Well In Advance
After you apply for home loan, you would have to prove your financial worth to allow the bank to judge whether you are capable of repaying the loan EMIs over the period.
For this, you have to furnish six months’ salary slips, Form-16 issued by your employer, Income Tax Returns filed for last 2-3 years, and other documents.
You should build this portfolio beforehand to expedite the process of loan approval.
3) Utilize The Home Loan Calculators
To assess whether you would be able to cope up with the monetary burden of EMIs for a sustained period, you can take the help of home loan calculators readily available online or on the sites of various banks.
You need to fill in the loan payment, duration of repayment and existing bank home loan rates.
would give you a fair idea of the down-payment you would need to make and help you better plan the loan amount in advance.
4) Compare Loans Based On Merit
Even if bank home loan rates were equal, there would be other charges and fees which vary from one financial institution to another.
You need to factor in all charges that would be levied alongside normal interest rates. Visit different banks and seek quotations. Analyzing the charges beforehand would help accelerate the process of securing loan later.
5) Fulfill Pre-qualification Criteria For Home Loan
Real estate agents would require your pre-qualification for a home loan before they can initiate the process of providing you with apartment details that you can afford.
Remaining pre-qualified by furnishing your income, savings, expenses and investments to an authorized assessment body would help secure loan instantly once you finalize the home.
6) Understand Which Loan Option Complements Your Needs Optimally
Home loans are availed in fixed or adjustable rates. With a fixed rate, you can predict accurately the amount you have to shell out every month.
In contrast, adjustable rate offers you the advantage of lesser initial payments and also benefits you if loan rates go down further in future.
You should also inquire about the rates that are applicable for switching between different loan modes.
These six tips would help you fast-track the process of securing of a home loan for stepping into your dream home at the earliest.
The easy way to get a home loan is to remain prepared for loan requirements well in advance.