You may be in your early 20s or late 40s when you decide to buy a house of your own, or perhaps wish to expand your current house to accommodate your growing family. Whatever the age and the reason, there will always be a first time when you decide to apply for a home loan. Taking a home loan and repaying it is quite a responsibility that is why it is crucial for first time loan taker to take into consideration a few aspects before actually applying for a loan. You may have done your own research and know the type of interest rates, type of home loans, etc. but listed here are a few tips that will help anyone who is taking a loan for the first time:
- Rate of interest is not everything
It is a common misconception that the most important thing about any loan is the rate of interest that the lender is demanding. A loan taker may come across many lending institutions that offer home loans with a lower interest rate as compared to other lenders. The rate of interest is a crucial factor when it comes to deciding on a lender, but not the only criterion.
- Do your own research
It is unwise to blindly follow the type of loan that your friend, relative, or colleague has taken without doing your own research first. This is because your reasons for taking a loan, your credit score, your repayment capacity, loan amount, collateral, and other factors for loan determination will be different from the other person’s. The best type of loan for ‘A’ may not be the best one for ‘B’. Hence, do your own research so that you can get your hands on the best home loans in India.
- Ensure the credibility of the lender
Go through the comments posted by previous borrowers of the financial lending institution for any red flags. However, make sure that these are not fake and just there to reduce the credibility of the establishment. Carefully going through the experiences of fellow borrowers helps to better understand the relationship between the lender and the borrower.
- Level of post-sales service
The process of taking a home loan doesn’t end with the loan amount being transferred to your account. You may need tax certificates, need to change your home address, etc. while you are still repaying the loan. When you opt for a lending institution with good after sales service support, you also ensure that your future hassles are taken care of. One may find out the kind of service offered by browsing through the particular financial institute’s website and reading reviews.
- Time taken for loan approval
This may sound quite unimportant, but it rarely is. You may be in a hurry to grab that house of your dreams and may need to make the seller an offer soon. What happens when the financial institution doesn’t approve of your loan soon enough? To avoid such hurdles, make sure that the lender has a quick loan approval time.
Be confident of yourself and your abilities and go ahead, apply for that home loan that you need!
Summary: Don’t let the idea of taking a home loan for the first time scare you; use these basic tips to get the best home loan that you can!