Are you planning to buy a house by applying for a loan? If yes, then this may be the most crucial financial decision you will ever make. So, choosing the right house loan for it can make or break your entire home buying experience. Before finalising a loan, you must have clarity of its repayment terms and other crucial aspects.
To make the most out of home finance, you must ask the housing finance companythe following five questions.
1. What is the maximum loan tenure available to repay the house loan?
As a general trend, most moneylenders provide 5 to 30 years for loan repayment. You can tweak the repayment tenure based on your age, income, and financial situation. This one is an essential consideration as the EMI calculator for home loans asks for the loan term while calculating your monthly instalment.
Additional Read: How You Can Repay Your Home Loan Quicker
2. Can I add a co-applicant for the house loan?
A co-applicant serves the purpose of supplementing your income and thus, helps you in satisfying the home loan eligibility criteria. If you are not meeting the eligibility criteria singularly, you must enquire about the addition of a co-applicant.
A co-applicant is someone with whom you can jointly avail of a home loan. Apply for joint property ownership with any of your family members, such as spouse, siblings, parents, or children and improve your chances of getting approved.
3. What tax benefits can a housing finance borrower enjoy?
You must ask your lending institution about the associated income tax and insurance benefits before applying. Home loan interest rates can be disruptive, and so, you can relish interest and principal deductions under the Income Tax Act of 1961.
Furthermore, if you are availing of housing finance for the first time, you can receive additional benefits under Section 80EE. It makes the payment of the home loan EMI somewhat easier. You can enjoy other tax benefits as well that your loan provider must inform you about.
Additional Read: Income Tax Benefits on Home Loan for the Year 2020
4. Is a house loan refinancing option available?
Repayment of thehome loan rates can become challenging sometimes. On such an occasion, you can transfer the balance loan amount to another lender.
Proceed by inquiring your lender beforehand about its loan transferring policies and charges. Pre-closure charges usually apply to balance transfer or refinancing. Also, prepare for an uncertain future by taking the help of a home loan EMI calculator to gauge your loan affordability accurately.
5. What expenses do the lender bear?
Apart from the market value of the house – the down payment, processing fee, and the statutory expenses also make up for huge parts of the deal. So, you must ask the lender what other costs, if any, your loan amount covers. Also, it is always smart to know about the maximum amount you are eligible to receive. This lets you calculate the associated EMI with the help of an online home loan calculator.
Facing difficulty with housing finance?
A reputed home loan providerlike Tata Capital can be your best pick to avail of a house loan. We offer attractive interest rates, easy repayment options, and speedy processing with minimal documentation.
To own your dream house, get in touch with us today!