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Things that have to be carefully considered while applying for home loans

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Things that have to be carefully considered while applying for home loans

There are several myths revolving around home loans and what should be done in order to get the best possible deal. You must have heard that low rates of interest always indicate the best deal on your home loan. While getting lower interest rates will certainly be a welcome development, there is something more to this as well. However, financial institutions may have several financial charges and fees which may be included in the terms and conditions document.

Instead of jumping in glee with the low interest rates on offer, check the charges and other fees carefully before applying for the home loan. You should always remember that due diligence is as much your responsibility as the lender’s when it comes to verifying that the property deed is authentic and in order. In case the title deed turns out to be problematic later on, you will still have to repay the home loan amount that you have borrowed. You should always take legal assistance for verifying the authenticity of the property that you are about to purchase. Contact the zonal sub-registrar office and obtain the EC (Encumbrance Certificate) for the home you are about to buy. This document will have all the possible obligations or issues which may be legal or financial for the property. This will help you stay on a firm footing while buying the property.

Both fixed and floating rates of interest come with their own sets of benefits and disadvantages. You should always compare rates offered by various lenders in the country and then choose the interest rate type. You should also take your time before choosing a home loan balance transfer process. First negotiate with your existing lender and you may well get cuts on the interest rate and other attractive terms and conditions. If this does not work out and you are in the early stages of your loan, you can choose a home loan balance transfer. Suppose you do not have 20% of the down payment amount ready. This does not mean that you will not be able to purchase your home. You can always pledge another property as collateral for raising the funds that you need. You can also consider a personal loan in this regard.

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