Have your heart set on a beautiful house you would like to own? Well, if you’re a first-time home loan buyer, you might have already explored the various loan options in the market. However, since a home loan is a big financial commitment, it is natural to get overwhelmed by the loan process.
Wondering how to get a first-time home loan?Here are a few expert tips to help you out.
1. Evaluate your financial needs
Start by assessing your finances properly. Since a home loan is a long-term commitment, you need to evaluate how much loan amount you can afford to borrow and repay. Moreover, you should have enough saved up for a down payment as well. Once you’ve a budget in place, you can narrow down the available property options easily.
2. Compare lenders
To get the best deals on home loans, you must shop around and compare the different interest rates available in the market. You also need to consider other factors such as the application process, repayment flexibility, customer service, etc., offered by the lender and choose the one that suits your needs the best.
3. Opt for affordable housing schemes
Today, the government offers several housing schemes to help first-time homebuyers afford their dream home. For instance, under the Pradhan Mantri Awas Yojna, you can get home loans at subsidized interest rates from reputed lending institutions. So, when getting a home loan first time,do check if you are eligible for such housing schemes.
4. Check your eligibility
Once you’ve narrowed it down to your choice of lender, check if you meet the eligibility criteria set by the lender. This is because different lenders have different eligibility criteria to qualify applicants for the loan. These may include your income, employment, age, work experience, and credit score.
5. Shell out a sizeable down payment
If your finances allow, consider putting a bigger down payment when getting a home loan first time. This is because the higher the down payment, the lower will be the loan amount you need to borrow. And therefore, the less will be your EMI.
6. Choose a convenient loan tenure
Lenders give you the flexibility of choosing your repayment tenure. A longer tenure might seem affordable as you’ll pay lower monthly EMIs, but you will end up paying more interest in the long run. In contrast, a shorter tenure will have you paying higher EMIs but you will pay less interest and get rid of the debt sooner. So, make sure to assess your affordability while deciding on suitable loan tenure.
7. Read the fine print
Once your loan application is approved, make sure to read the loan agreement carefully before signing. Confirm that the interest rates, EMI, and loan tenure in the documents are as discussed. This will help you avoid any discrepancies in the future.
As a first-time homebuyer, loanapplication process might seem challenging to you. But not with Tata Capital! We offer you a simple online application and a swift disbursal process. Visit our website to learn more about our attractive home loan interest rates and EMI plans.