Follow This Easy Process to Get an Affordable Home Loan
When you are in the process of buying a home, a Home Loan is the perfect financing option. Since there are several Home Loans offered by banks and financial companies, it is important that you evaluate each one to check its affordability. An economical Home Loan gives you several benefits like good customer service and nominal rate of interest. However, in order to get the best Home Loan, it is important that you follow certain steps.
- Review the customer service of a lender:
a - Each lender has a different USP. However, you must never neglect the customer service offered by the lender. This quality can influence your overall borrowing experience.
b - Lenders with good customer service are able to address customer issues quickly and efficiently.
c - They also ensure timely posting of interest and principal statements and make the loan procedure easier for you.
2. Research the market:
a - Study the loan market thoroughly to get an idea of the interest rates offered by various lenders. Compare the interest rates and select a lender with the lowest rate of interest.
b - Also keep an eye out for any perks that a lender is offering along with the loan. These perks can include seasonal discounts, offers during festivals and online account access.
c - You can also use a Home Loan EMI calculator to determine which lenders are offering the lowest EMIs.
d - Selecting a lender with the lowest EMIs will help you add to your savings.
3. Ensure that you have a good credit score:
a - Your credit score plays a major role in determining the rate of interest that you are charged by your lender.
b - An individual with a good credit score is considered to be a safe applicant and hence is charged a lower rate of interest.
4. Go for a Home Loan balance transfer if needed:
a - A balance transfer can help you gain from paying lower interest rates.
b - However, an unplanned balance transfer can cost you more than you anticipated.
c - Hence, if your lender is charging you a higher rate of interest, weigh all the factors before opting for a Home Loan balance transfer.
5. Carefully look into all the costs and fees that your lender is charging you:
a - In some cases, borrowing a Home Loan can turn out to be expensive after all the fees and charges are added.
b - Go through your lender’s terms thoroughly and ensure that there are no hidden costs. Even if there are, calculate them and ensure that the total doesn’t cross your budget.
6. Do not borrow more than you can repay:
a - Taking a Home Loan without knowing how much your home will cost can lead to over-borrowing. This can result in you paying unnecessarily expensive EMIs.
b - So, arrive at a principal amount after you have calculated the expenses of purchasing a home. When you know the final price, proceed with selecting the principal amount.
7. Select an appropriate tenor:
a - Choosing an appropriate tenor can drastically influence the affordability of your Home Loan.
b - A short tenor can make clearing the principal amount fast and convenient, provided you have the funds. A long tenor makes repaying a long procedure but keeps your monthly spend low. Choose a tenor based on your financial status.
Once you have implemented these tips, apply for a Home Loan with Bajaj Finserv. Here you can gain from nominal rates of interest, online account access and minimal documentation.
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