Home Loans: Financial Solutions for Housing Needs

Mozam By Mozam, 18th Jan 2018 | Follow this author | RSS Feed | Short URL http://nut.bz/jwxmye2p/
Posted in Wikinut>Business>Accounting & Finance

Many people who plan to buy their own house have to face various pertaining to house loan interest rates, loan tenure, bank or NBFC reputation, loan amount qualified for, processing fees, repayment strategies, etc. Your home loan is probably the biggest financial commitment people make.

Financial Solutions for Buying Home

Home loan EMIs last for around two decades and considered as one of the major monthly expenditure for rest of your life. You can say you're entire savings, investments and monthly finances depend on the amount of EMI you choose to pay for. Therefore, borrowers usually search for companies or banks who offer home loans at lowest interest rates.

So here are few tips on how to manage your home loan interest rates in a cost-effective way:

One of the worst habits of people who are in search for housing finances is that they just apply for the first company or bank they visit physically or online. However, it’s one of the biggest mistakes. Today, internet has come as boon that lets you compare apple-to-apple for any product whether it’s shopping, investment products, equity stocks, insurance policies or loans.

So, always choose to compare loans products to judge the best home loan offer in terms of interest rates, processing fee, tenure, benefits & features, discounts, and other important features. Also, your decision should not be based on the need but also on individual's financial readiness.

Once you zero down your search on particular bank or private finance company, you should assess your affordability. Lenders provide loan amount up to a maximum 80% of the agreement value of the house. So you should save for the margin money of around 15-20% before applying for home loans.

Make sure you have enough savings to match at least the 20% of the down payment along with some extra savings handy to cover up few months of your home loans. Because recession, health risks or other perils don't come knocking at your door. It shows you’re well-prepared towards the loan and you'll have more probable chances for loan approval. In fact, with upfront money in hand you can negotiate for a better interest rate deals with the lenders.

The maximum loan amount an individual qualify for depends on factors like income source, additional income, job or business stability, age, number of dependents, location and age of the property, and credit score. A steady income source and good credit score will be the foundation points for negotiable interest rates. It means you're responsible citizens and you have capacity to repay your debt on time and don't like to come under default scanner.

People who are in the same job or type of job for at least 2 to 3 years or have been successfully running business with good source of income prove their income stability, job security and continuous source of income for loan repayments. It also helps you to negotiate with the lenders in reducing your interest rates.

Your debt-to-income ratio will be considered while applying for home loans. So, if you want your loan to get approved, then you should pay your earlier debt like personal loan, car loans, on time and look favorable for home loans.

Once you calculate the interest rates, monthly EMIs, processing fees and other charges associated with home loans, you can visit any of the leading banks or finance firms websites. Fill up your application form, upload scanned copy of the necessary documents and hit the SUBMIT button. Once the lender successfully verifies the documents, it takes around a week's time for the loan amount to get disbursed in your bank account.

You can download the application form through your smartphones, PDA, tablet and desktops. At the comfort of sitting at your home or offices, you can calculate your monthly installment, apply for home loans, and know the loan amount qualified for, terms and conditions & more.

Tags

Home Loan, Home Loans

Meet the author

author avatar Mozam
Mozam Khan is a Profession blogger since 2015, He has been written and Publishing blog and article on home loan, home loan interest and finance services.

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