Things to keep in mind while taking a home loan

 

Buying a house is a remarkable achievement indeed, but the spiraling prices of the property makes it a huge investment. Without getting a home loan it takes off a huge chunk of your savings. Selecting the right home loan is vital for many of us to avoid any shockers in the future.

Read on an insight into the things to keep in mind while taking a home loan brought to you by Asset Homes, eminent builders of top-notch flats in Thrissur. 

Good research

Do not go by hearsay! Take time out to do your own proper research on loan options in the market. The interest rates, processing fees, first payments, tenure and everything has to be compared. EMI home loan calculator is available online for you to check out how much you have to keep apart for paying your monthly EMIs. 

Your Credit History

These days, your credit score has become all the more important! In fact, the interest rate you pay on your loan is being linked to the credit score. If you have a CIBIL score of 750 or more, you may get the best interest rates. With a cheaper loan with low interest rates, you will be able to borrow higher amounts & purchase pricier properties. 

Spend conservatively

Keep a tab on your expenses during the home loan tenure. If you can spend on a budget, you could actually use it to foreclose the loan.

Floating or fixed rates

Home loans come with two types of interest rates: floating and fixed interests. Floating interest rate is linked to market rates and moves in tandem with a base rate.  Whereas fixed interest remains fixed for a few months defined in the loan agreement. In many cases floating rates come out cheaper than fixed rates in the long run.

Understand foreclosure norms

RBI has banned foreclosure penalties very recently. Hence ensure you do not end up paying anything extra while foreclosing your loan.

Save up to foreclose

Try saving up money for the foreclosure of your loan. The sooner you can be free of the (EMI), the earlier you can enjoy the freedom to spend that money on other luxuries of life.

Compare processing fees

Be it for a fresh loan or for a balance transfer, you should enquire in all the banks before you finalise a home loan.

Read the documents carefully

Before you sign on the dotted line, read everything written in the loan agreement. It is highly necessary to be aware of terms and conditions.

Save for the down payment

While buying a house, every borrower has to pay some money from his own pocket called the down payment. Try to pay as much as possible as down payment as this will reduce your interest paid on the principal.

We hope that this list of things to keep in mind while taking a home loan has helped you to reach a decision. Buy flats in Thrissur built by Asset Homes and get the best deals!