Own house is every one’s dream now a days because they are losing their salary and life in paying rents only. Present there is no situation of constructing home without taking loan. It’s not good enough buying a house by paying whole amount through money or loan. So, It’s better buying a home by paying some advance. How to take bank loans? Safety before applying loan? Process of repaying the loan… to know all this just continue reading…
The big minus with the banks are their hidden charges. Start only when you verify fee details in banks. Know about legal charges, prepayment charges, valuation fee, processing fee, commitment fee etc. and how much to pay for those. Interest rates are different in various banks. And loans also vary depend on costumers. So, collect the details in all banks. Take the help of phone and internet. Some banks will reduce the interest rates under phone mela.
Home loan insurance will be given free in some banks. Balance all the benefits and choose an adequate one. If there is no insurance along with loan then you have to apply for it. Interest rates sometimes depend on behavior of managers also. So, go for a low interest charging banks. Some organization give exception on some documents but, there will be higher interest rates.
Present, some banks and financial organizations are verifying past loans and their repayment procedure. The details regarding these will be available at CIBIL. Banks are finalizing decision based on the reports given by them. So, clear the past loans if there is any and get clear credit report and good score. And clear all the EMI s that you are paying at the time of applying for the loan. If the number of EMIs are high then range of loan will be decreased.
Decide how much loan to claim when the home budget is finalized. Banks ask to pay about 10 to 30% as down payment. Some organizations won’t ask for down payments. Don’t pay total amount at a time. Take 80% of total amount you want for constructing or buying home and pay remaining 20% as down payment.
Estimate the expenses in your near future and save some money. And also keep 2 to 3 months EMI amount a side. There will be some financial problem at the beginning. So, save some money to overcome those. Many think about the furniture for new home so, plan the budget accordingly. So, to clear EMI in time if you have extra amount in hands then use it for clearing the loan. So, you can feel free by clearing the total in time.