Most people plan their dream home for years but don’t give a considerable amount of thought to getting the right housing loan for it. Taking a housing loan can be an essential part of your experience as a homebuyer.
With many factors playing a part, a buyer must make a timely decision about choosing the right housing loan offer. And, with Diwali just around the corner, lenders are already luring home buyers with attractive Diwali offers and discounts on housing loans.
Additional Read: Why is Diwali the Best time to buy a property
Are you a potential housing loan borrower? If so, then here are a few tips and tricks that can help you make the most of your home loan deal.
1. Ensure a good credit score
Your credit score is a way for the lender to determine your risk profile or your capability to repay. A good credit score would be above 750 and can be achieved by avoiding delays in credit card or other EMI payments. An impressive credit score can help in fetching a substantial deal on your housing loan as the lender might offer a lower interest rate. In contrast,a bad CIBIL score could affect your home loan eligibility.
2. Save for the down payment
A down payment is an upfront lump sum to be paid while taking a loan. The bigger your down payment, the lesser will be the consequent loan. Therefore, before applying for a housing finance, it is ideal to be prepared to pay the maximum amount in the form of your down payment.
3. Compare the offers
This is one of the most basic as well as crucial tips to fetch the best home loan deal. Simply choosing the cheapest loan is not as wise as there are a variety of perks and disadvantages like flexible repayment tenures, or hidden fees you need to consider. Therefore, compare loan offers and terms from multiple lenders before choosing the one that ticks all your boxes.
4. Use a home loan calculator
A loan calculator can help you determine how much finance you can afford and can access online. To use a home loan EMI calculator, you have to enter details such as the price of the property, interest rate, and down payment. Inputting said data would give you a close estimate of the loan amount you should borrow keeping affordability in mind.
5. Keep your documents ready
Last but not least, accurate documentation is one of the top tips for buying homes regardless of the lending institution you choose. Several financial documents are required while applying for housing finance and keeping them ready will speed up the process immensely. So, collect your last few pay slips, bank statements along with your tax returns and arrange them in a way that you can easily present them when needed.
Need Help Finding the Right Housing Loan?
Tata Capital is here to assist your journey of finding a dream house. Being one of India’s most trusted lending institutions, we offer housing loans at attractive home loan interest rates along with flexible tenures and minimal documentation.
To know more about our entire gamut of financial services, get in touch today!