A home loan plays an important role in the life of people who want to have a house or more investment. A home loan is one of the best financial ways to buy a house where you need to get the benefit of low interest to pay and having the choice to select a long tenure. Whenever there is borrowing there are questions like from whom to take, is the lender reliable, will I be able to pay, etc. but the loans are having their own purpose to fulfill which are applied as per the need of the borrower.
Steps to ensure home loan are
- Research
Before applying for a home loan your aim should be to do research on three factors of loan which are down payment, EMI payment, and the repayment period. With these factors, you can decide which lender you should choose with an impressive home loan interest rate.
- Affordability
You can always choose the location to live but if you are not able to pay the home loan amount then you may face consequences. Choosing the right lender is important for those who have a steady income because the EMI payment is compulsory so are your other overhead expenses.
- Expense control
You should have proper control over your expenses when you are up to pay a high amount of EMIs. Spending money on luxury every time is not the choice but this tenure period will, later on, bring a joyful smile on your face with no burden.
- Ideal EMI choice
You always have the option to down payment the more down payments you do the lesser EMI payment will be. It is all about reducing the stress so you should be calculative with your down payment and your savings for other personal expenses.
- Balanced Tenure
Your tenure and EMI should be balanced, if the tenure is at maximum then you will be a high amount of EMI but at small parts of each month but if you choose to pay earlier then this will save a lot of money.
- Credit Balance Maintenance
Your credit score should be more than 750 which will help you in the approval of the loan and better interest rate. The best way is to keep doing credit payments on a regular basis.
- Before Foreclosure
Reading all the norms and rules of RBI on a regular basis which changes frequently and can be beneficial for you as well.
- Eligibility
Make sure you are having enough eligibility which will save you from getting and default or disapproval for the home loan application. In ICICI Home Loan you don’t require much eligibility, just 2-3 aspects they consider to approve your valuable loan.
- Additional/hidden expenses
There are banks that charge a processing fee, service charge, etc. these are just one-time charges and if the lender is charging them monthly or more regular intervals then take them into consideration.
- Carefully read agreement
Reading agreement is the key even if you are done with all your formalities it is the responsibility of every citizen to read the agreement of home loan carefully.
Now since the above-mentioned tips are enough for the guidance still some people get tricked by the lender it is because they are not reading the agreement well and also not following the RBI rules. If the lender is not following the RBI then you can file a complaint as well but ignores these things. In a rural area still, many people are paying EMI for the house without knowing the exact details of their loan but it doesn’t mean the lender is not trusted . If the lender is from the government sector then you can trust them because they are directly licensed by the government.
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