Pointers for the First Time Home Buyer - Home Loan Blog - Tata Capital

Home Loan Pointers for the First Time Home Buyer

Mar 08, 2017

Owning your own house is a dream that everyone has. A house that can be truly yours. A house that doesn't come with landlord interference. A house that you can make your home...
As a first time home owner, getting a home loan can be quite a daunting task. But you can prepare yourself with all the information beforehand to avoid any last minute surprises.

1) Loan eligibility: Knowing your home loan eligibility will keep you prepared for any unforeseen circumstances. Many loan takers find themselves in a fix when they come to know that they are not eligible for the amount they were expecting. If you are new to banking procedures, it is highly recommended to be equipped for a smooth home buy. You can check your loan eligibility online too.

2) Comparing options: As people are different, various loans types are made to suit the different needs of people. There are many great options for first-time homebuyers. Everything depends on your situation, down payment, credit and more. Some banks have grant programs available to help with things like down payments and closing to those who qualify.

3) Types of interest rates: Choosing the bank that can offer you the best rate is important for you as a home buyer. Do not neglect to compare the offers of all leading banks online first. Many a times, builders have tie-ups with banks and thus offer subsidised rates and other schemes.

A common advice many loan takers get is to go for a fixed rate loan that assures the same rate till the end of the tenure. However, choosing a fixed or floating rate completely depends upon your situation.

4) EMI affordability: Equated Monthly Instalment - EMI for short - is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. If you are wondering how much money you can afford to repay without burdening yourself for your dream home, know that it depends on how much EMI you can pay and for how long. If you know how much EMI you can pay every month, then it will be easier to know how much you can afford. You can take help from a bank or easily calculate your home loan EMI online.

As a first time home owner you must keep the above factors in mind for a hassle free experience!