Things to learn before applying for Finance

Home ownership is one of the best financial investments that can be done. Today, number of financing companies is offering different kinds of financial programs; this made homeownership easier for people. To ensure that you get the best deal, a few things have to be considered before opting for finance for buying flats for sale in Chennai.

Are you looking for home financing contract with lowest rate, and then you should concentrate on your credit score. If you want to bump your credit score, you have to maintain a good payment history. At the earliest, start working on it and if planning to open an account especially for this purpose, it is best to approach the financing company.

Have you started a search for flats in Chennai without taking a pre-approval, then think again? Pre-approval gives an idea about how much money a lender could offer in home financing. For this purpose, current income, financial background, credit score etc will be considered by the firm. If you don’t require a pre-qualification, there are chances of ending with lesser financing than the normal for the purchase of Apartments for sale in Chennai.

Four basic components of monthly payment are profit payment, acquisition payment, insurance and tax. The first two will be the actual payment mode. Property tax completely depends on the home purchase amount and depends on the country. On an average, around 1.2% of the home value should be paid annually. Insurance in this context refers to property owner’s insurance. The repair cost of property/flats in Chennai or other parts can be covered in insurance. In addition to this, the property owners of condo or apartments in gated community should pay association fee. This amount goes towards maintenance of amenities like swimming pool, gym, spa etc.

Next step, choose the right financing program that matches your financial commitment. Do a little math calculation based on the income and expenditure. For example, if in case your income isn’t having a significant increase, then you have to pay your debt for a longer duration.

As mentioned earlier, the pre-qualification process will help the financing company to understand the financial status. Besides your payment history and credit report, financial institute will check legal settlements, tax returns, employment history, back transaction and many other documents of the property buyers of flats for sale in Chennai. The property purchasers will be provided with a checklist of documents for submission. If you are looking forward to buy apartments for sale in Chennai, we at Marutham Group are here to help you on choosing the right financial plan and have a smooth transaction.