Factors To Be Considered Before Taking A Home Loan.

“Roti! Kapda aur Makaan” , have always been the pillars of our survival. All the hustle and bustle, the painstaking routine and the work hard attitude is done to earn the best of the above. Apart from the lucky lads majority of us need to work in lieu to conquer the Makaan pillar. With not many options & luring asset in hand one opts for home loan to get his “Sapno ka ghar.” With so many banks & financial institutions in the market today it is natural to get stuck in a dilemma to make the best of decision.

One minute just stop & think, what is the purpose of buying the property, investment or residing? If you are clear on this then do check the credibility of the property, its location, builder’s history because one loophole would take you no where.

After gathering all the information, first & foremost check your CIBIL score. Good CIBIL score is considered 750 & above. If your score is 750 and above the chances of getting loan approved quickly are higher.  (Score check -  https://www.cibil.com/online/credit-score-check.do at just Rs.470.

Then go through the RBI guidelines. These guidelines will give you a clear insight, as how much loan you can get. If your requirement is for Rs.20 lacs you stand a chance of getting loan approved for about 90% & if your requirement if for more than Rs.20 lacs, the percentage boils down to 85%.

With the RBI guidelines in mind you can then look up at banks of your preference. While checking out the EMI percentage, specially check the processing fees formulated by them. The EMI plays a pivotal role while selecting a bank but we often are mislead as we don’t consider the tenure applied for. If you are aiming at investment as a home loan the tenure could be maximized keeping the EMI to the minimal.

 Banks put across luring advertisements and offers but there are many conditions under the quilt. Do consider the hidden factors too.

Lastly, it is misinterpreted that financial institutions aren’t a good choice while opting for loans but when put against banks & their offers today, the financial institutions are no less & if vouched for, they stand at a better place, with great leverages.

Before taking a home loan consider the above factors because it’s all about your dream home and that hard earned money!