Things to know while taking home loan

1
Things to keep in mind while taking a home loan
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Legality of the Property
Before you lay your hands on a property, make
sure the builder is reputed and all papers of the
property are in place. With RERA implemented
across regions, you can check the builder's
profile online on the RERA website. Banks often
refuse to give loans if the builder is not in its
approval list.
3
Down Payment
You must have a budget chalked out before you
start looking for a house. Calculate the down
payment you would have to pay. It is usually
about 20 of the value of the property. You can
choose to pay more from your pocket if you can
afford.
4
Check your eligibility criteria
Home loan lenders have a list of eligibility
criterion and only if you happen to meet those,
you are considered a potential borrower. Banks
typically look at your credit history to
understand your repayment habits and prefer a
credit score of 750 for lending out
5
Check the fees and charges
Home loans come with associated fees and charges.
Processing fee is the most common fee payable at
the time of application. Check if the fee is
reasonable when you choose a lender.
6
Check the interest rate
The interest rate on loans is a determining
factor in deciding where to take your loan from.
Lower the rate, lower would be the EMI outgo.
Home loans are offered at fixed interest rates
and floating interest rates
7
Check your affordability of paying EMIs
Customers often take up a lot of burden when it
comes to paying EMI thinking that it would get
easier with time, as their income would increase
eventually. Consider the possibilities of not
getting a raise soon or other unforeseen
circumstances.
8
Buy an insurance plan to cover the loan amount
Once you have taken a loan, the outstanding
balance liability falls on your family's
shoulders in your absence. You can avoid this
financial burden on your family by buying a
mortgage redemption insurance cover while taking
home loan. It is a decreasing term plan where the
cover amount decreases as you repay the loan.
9
Shop Around
There are hundreds of banks and financial
institutions which offer home loans at attractive
interest rates. Before buying a home loan, go
online and compare the interest rates and charge
structure of all available home loans