Buying a house is a once in a lifetime experience. It is a matter of accomplishment as your own house gives a sense of security and independence. However, real estate is an expensive investment and you may need financial assistance to make this dream come true.
In some cases, most people are reluctant with the thought of liquidating all their savings towards a home purchase. In such instances, home loans can bridge the gap and help you in moving forward with your decision. Since buying a house is such a significant investment, it is essential to select the right home loan for your needs. Apart from having favorable terms and conditions, your home loan should also prevent you from any surprises in the future.
Here are critical aspects you may want to keep in mind before applying for a home loan.
- Detailed research
A home loan is a popular financial product. However, each lender may offer a slightly different product with different features. It is advisable to compare home loans across lenders to arrive at the right decision. You may even like to download the home loan app to make this task simpler. The loan app contains all the necessary details and information you may need.
The Bajaj Finserv Loan App not only gives you all the details but can also help you with post-loan and investment services.
- Interest rate
This is perhaps one of the most significant aspects of any loan. The interest rate charged by a lender can make or break your decision to go ahead with their loan product. Leading lenders like Bajaj Finserv offer home loans at attractive interest rates. To know more, you can download the online loan app and read the terms and conditions.
In addition to this, you may want to understand the difference between floating and fixed interest rates. A fixed interest rate home loan is one where the interest rate and EMIs don’t change during the loan tenor. In the case of floating interest rates, the rate can change in the future depending upon the economy and market conditions. They could provide you with a chance of reduced EMIs and are thus more popular.
The tenor of your home loan is an essential element that determines your EMI. While a longer tenor may mean lesser EMIs, it also means you could be paying more money in the long term. It is advisable to opt for a shorter repayment period if you have a consistently increasing income.
- Foreclosure terms and conditions
A loan is a financial obligation that many of you would like to conclude as soon as possible. Typically, banks and NBFCs do not charge any penalty on prepayment of EMIs. However, this may not be true in the case of foreclosures. Accurate knowledge of such terms and conditions can save you from future troubles. A home loan app can help you with all the relevant details about foreclosures.
- Credit score
This is a crucial factor that determines the approval of your loan application. In certain instances, a credit score above 750 may even give you a favourable negotiating power. Banks and NBFCs may also agree to extend loans at a lesser interest rate if you have an excellent credit score.
Your credit score depends upon your past credit history and behaviour. Timely and complete payment of your credit card dues and EMIs can help you in improving your credit score. You may easily avail your CIBIL report online and check your credit score before applying for a home loan.
A home loan is an easy way to achieve your dream of buying a house. However, it is crucial to understand all the aspects of a home loan before you apply for it. You can download the instant loan app to receive more information.
You can also check out the pre-approved offer on your home loan to reduce the hassle of availing a loan. One of India’s leading NBFCs, Bajaj Finserv offers pre-approved personal loans, home loans, business loans, and a host of other financial products. These pre-approved offers are not only easy but can also help save your time.