Are you planning to buy a new home? You might not have enough funds. Moreover, liquidating your savings is also not a good idea. Applying for a house building loan can take you closer to your dreams.
These days, several banks and financial institutes are ready to offer you a home loan. However, you have to keep certain things in mind before applying for one.?
Check Your Credit Score
Maintaining a decent credit score is most crucial to make a good impression on your lender. It is not that hard. All you have to do is repay your credit card bills and existing loans on time. It will increase the chances of your loan getting approved.
Make sure you do not have any pending loans while applying for a new one.
Choose an Affordable Loan
Remember, you have to repay your loan on time. Do not forget about the EMIs. Calculate your EMI to get an idea if you can pay it every month.
Choose a loan that has a lower interest rate. That will reduce the instalment amount to make it more affordable. Make sure that the amount does not go beyond your capacity to pay.
Check The Processing Fees
It is the charge that you have to pay after your application gets approved. The processing fee varies across banks and NBFCs. Make sure you choose a lender who charges less.
Check the additional charges taken by the institution before applying for a home loan. It will let you save your hard-earned money.
Compare Different Loan Options
Do not hurry while applying for a home loan. Take all the time you need. It would be foolish to make an impulsive decision in financial matters.
What should you do? Research the different loan options available in the market. It might take some time and energy. But you will not regret it later.
Compare factors like interest rates, repayment options, and down payment.
Choose the home loan that suits your needs. After all, it is the question of your dream home. Know all the minute details before making any decision.
Choose the Repayment Tenure Carefully
It is time you take to repay the loan. A lot depends on whether you choose a shorter or a longer repayment tenure.
Your EMI amount will depend on it. Well, if you wish to repay your loan for a more extended period, your EMI amount will be lesser. However, the lender will charge a higher interest rate. Thus, you will end up paying around three times more. But if you choose a shorter tenure, your interest rate will be lower.
Though the EMIs will be high, you can get the loan repaid superfast. So, if you can manage to increase your income or cut down on your expenses, it is always better to go for a shorter tenure.
Apart from considering the above tips, do not forget to check the documents required for a home loan. Keep them in place to get your loan approved on time.
PNB Housing offers you affordable home loans. What is more, the entire process is digital. That will ensure you get faster approval. So, what are you waiting for? Go ahead and take the first step towards fulfilling your dreams.
