Points to Consider at the time of Availing Home Loanby Anamika Verma Advisor
Are you all set to apply for a Home Loan online and buy your dream home? Before you could land on a lender’s website and apply for it, you should consider some pointers.
Considering some of the basic yet vital factors before applying for a Home Loan is vital to securing the housing loan approval at a lower rate of interest.
Don’t be concerned if you are getting confused as this post will help you know some critical factors that every potential Home Loan borrower should consider.
Consider these Pointers while Applying for an Online Home Loan
Your CIBIL Score
Anyone with a CIBIL Score of 750+ or more can expect to get a Home Loan approval from an online lender without issues and at a lower Housing Loan interest rates. A higher Credit Score is one of the major parameters that lenders check while assessing one’s creditworthiness. You can keep your CIBIL Score higher by paying off your credit card dues and existing loan EMIs on time. A higher Credit Score can help you lap up the higher amount as the Home Loan to help you cover your needs entirely.
Once you have decided to apply for an online housing loan at one of the leading online lenders, you should see if you have the required affordability for the desired amount. Yes, if you are earning a decent amount of money, it should help you avail a larger amount as the Home Loan as you can manage the repayments without issues. People not earning a higher income need to bring down their desired loan amount so that they can manage the Home Loan EMI repayments over a longer tenor. You should also check your Home Loan eligibility with the help of the eligibility calculator. The online tool lets you calculate the exact amount that you can borrow as the Home Loan. Using the same, you can easily apply for the same amount and get quick approval.
If you are in your 20s or 30s, the probability of getting a Home Loan approval from reputed lenders is higher as there is a less chances of defaulting on the repayment. Anyone who is left with few working years can get a Home Loan but at a higher rate and for a small duration thereby affecting his/her monthly income severely. Thus, it’s better to apply for a Home Loan once you have 3 years of work experience.
The Home Loan Interest Rates
You can get either floating or fixed Home Loan rates while choosing a Home Loan. You can enjoy fluctuating (lower or higher) rates which is affected by fluctuations in the market. You can opt for it if you have a consistent income. Compared to fixed, you can grab up to 3% lower rates while zeroing on the floating rate. On the other hand, people earning a decent or average income should opt for the fixed interest rate. Like this, the can keep paying a known EMI per month which will not affect their monthly budget.
Opting for a longer tenor can help you pay smaller EMIs as you would spread the interest and principal amount cost but for that, you will need to pay compounding rates. On the other hand, opting for a shorter tenor means closing the loan sooner but coughing up more money towards it from your monthly budget for some months/years.
The Bottom Line
Securing an online Home Loan deal is easy these days if you have the required Home Loan eligibility. Now that you know some vital factors that can help you apply confidently for the Home Loan, it will help you manage it without issues.
Created on Aug 30th 2018 05:38. Viewed 608 times.