5 Steps you should consider before taking a home loan

Getting a home loan sanctioned is not that easy. So, just like other financial transactions, you should get acquainted with how the process works to avoid any kind of surprises later on.  Here are few things you should consider before signing on the dotted line.

Consider your eligibility criteria

Before hunting for affordable home loans in San Jose, you should pay heed to the factors that affect your eligibility criteria. The financial institutions generally consider the borrower’s salary or the monthly earnings to find out whether they can pay the monthly instalments or not.  They also check whether you have existing liabilities or not. If you have, the eligibility may go down further. Also, people with a stable source of income find it easy to get than those who are self-employed and have an erratic earning.

The Loan type

 You will find two types of home loans, one is the fixed type and the other is floating.  As the name suggests, a fixed type is one in which the interest rate does not change with market fluctuations. On the other hand, floating type varies according to the market conditions. You can take help of an expert to help you decide which type of loan is good for you.

Negotiate well

No matter what option you choose, you should not forget that you can negotiate on the interest rate.  Explore properly so that you are successful in getting lowest interest rates in San Jose. If you have a clean history for making the payments on time, you will be in a win-win situation.  Shop around to ensure you are getting the best deal.

Consider the tenure

If not properly planned, the monthly payments on your home loan amount can put you under great stress.  The EMI is always calculated on the basis of the amount you want, the tenure and the rate of interest. So, choose the tenure accordingly. You should make an informed decision only after finding out whether you can pay the monthly instalments without any hassle or not.

Read the documents carefully

It is a sensible decision to read the documents before you sign on the dotted line. Read the documents carefully to ensure the terms are same as what you agreed upon. Most importantly, know the processing fees, late payment charges and other things before you sign anything.

Apart from the points mentioned above, there are many more things that you should concentrate on before applying for home loans in San Jose. Make a move now.

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Created on Mar 14th 2018 02:30. Viewed 585 times.

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