6 Ways To Find The Best Home Loan In The City

by Rudra Raghavan Financier

Purchasing a house has got simpler nowadays with the advent of the home loan. Since you get easy access to a house loan, many people can afford one without much financial pressure. Although buying a house is no more a hassle, finding an appropriate lender is. There is an array of lenders who offer the credit right from banks to non-banking financial companies (NBFCs) to other financial institutes.

A housing loan repayment goes on for 10 to 15 years. Sometimes more than that. Hence, understanding the terms and conditions, selecting the right lender becomes a top priority when you plan to avail a house credit.

So, how to choose the best lender in the city?

Interest rates: They have the maximum bearing on your monthly EMIs as well as the borrowed amount. Most of the house loan today come at floating interest rates. The rates vary from lender to lender. You need to find a lender who offers the lowest interest rate to bring the overall cost down. Sometimes, interest rates also depend on the applicant. You can conduct a comparison between different lenders to find the ideal one.

Loan to value ratio: The loan amount depends on two factors – your income and the property value. Most of the times, lenders offer an amount almost equivalent to 80 per cent of the property value. Not all lenders are the same on this prospect. Some may provide you with a higher loan amount while others may provide a lower amount on the same property. So, check the loan to value ratio while choosing the lender.

Online access: Many today give you online access to the loan account. This is an essential feature. Through this loan account, you can gain information on credit interest rates, outstanding amount, duration left, next EMI, etc. If your chosen lender offers this facility, then opt for them.

No hidden costs: Lenders cheat borrowers concerning the hidden charges as they do not reveal all the costs related to the credit while availing them. At a later stage, the lender adds one charge after the other. It is like daylight robbery. So, be cautious while selecting a lender. In fact, you should check this aspect before you apply for home loan.

Secure prepayment facility: Home loans can go on for 30 years. Now, you may have opted for 30 years tenure to lower the financial pressure. But once the cash flow is high, you may like to prepay, or part pay your housing loan to become debt free sooner. In case the lender denies prepayment, it could hamper your financial profile. Therefore, be sure of the prepayment policy before signing the deal.

Turnaround time: The other crucial aspect while choosing a lender is the overall disbursal time. Before you apply for home loan, check on it as you will require the credit for the immediate purpose. Some take longer time, which can create confusion between the home buyer and the builder. Some disburse them within a week while others take a month-long time. Be certain of the disbursal time beforehand.