One dream that every person has is having a home of their own at
some point in their life. It gives you a different type of vibes when you know
that you have a home of your own, that comes with the comfort and luxury of
having your own shade and garden.
There is also no denying to the fact that although buying a home
is an intimidating idea, financially it is difficult to just buy a house in a
day. You have to take a lot of things under consideration however with some
financial planning; you can easily take a home loan.
Here are all the factors that need to be considered before taking
a home loan:
The charges of home loan: There are going to be extra charges and
expenditure when you opt for a home loan. You have to pay the lender’s
processing fee, service fees and administrative fees and the other type of
miscellaneous expenses that are involved. Also, you will be paying EMI or the
equated monthly installments every month, exchanging post dated cheque,
modifying the monthly installments or the other changes that will be involved.
Keep a check on the lender’s charges.
The eligibility of loan: There is a verification process of your
income, credit card history, and other dues that are checked before the loan
amount is sanctioned in your name. On a general basis, home loans can cover 80%
of the value of the property as the loan amount, depending on your income
criteria and how much you can pay in a month.
Always read the loan agreement: No matter how long the loan
agreement is and how much time it consumes, you have to read all the terms and
conditions and understand everything written over there. Also, never sign a
bank document even if the marketing guy tells you to. Make sure you read all
the terms before signing any bank document.
The interest rate that has to be paid: There are two types of
models involved one is the fixed interest rate that means the EMI is same for
the entire tenure of the loan till it is complete. It is good for people when
the rates are expected to rise in future. Second is the floating interest rate
that is dependent of on the base rate of the lender. As the base rate changes
the tenure also changes.
The tenure of the home loan: Generally a home loan is taken for 5
to 30 years. You can take it for the time after the deductions of PF, ESI,
gratuity, and taxes from your salary.
Check for all the interest rates before buying any one specific home loan. It is highly recommended to compare home loans interest rates using the dedicated platforms like Antworks Money and more before finalizing a bank to fund your need of a housing loan.