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10 Tips For A Best Home Loan Experience

Housing Finance Tips & Advice 03-10-2022 | 5 min read

Buying a home can be absolutely exciting. It is natural to lean towards a home loan to finance your home. However, it is recommended to find the best home loan available so that you can have the best experience. While considering the interest rate offered, the capital required, processing fee, and other charges, there are a few other aspects that you should consider. Here are some tips that you can use to have the best home loan experience.

Tips For The Best Home Loan Experience

By following these home loan tips, you can have a seamless experience throughout the period of your home loan.

1. Check Your Credit Score:

One of the most important aspects that a bank or lender will verify is your credit score. By analysing this score, they can gauge your creditworthiness. It is recommended to have a credit score of 750 or above. Having a high credit score can also fetch you other benefits such as a decreased rate of interest. If you would like to improve your credit score, you can do so by being timely with your credit bill payments, repaying a huge debt, etc.

2. Save For Your Down Payment:

Depending on your bank or lending institution, the range of down payment may vary. Usually, it ranges between 2.25% and 20% of the price of the home you plan to purchase. While designing a monthly budget, make sure that you put away the required money for your down payment.

3. Keep Your Financial Documents In Place:

During the home loan application process, you will be required to submit a list of documents. Make sure that you have these documents ready and in palace so that you can speed up the application process. Make sure that you have all the mandatory documents such as ID proof, address proof, bank statements, payslips, income tax returns, form-16, and others.

4. Compare Offers:

Before you choose a home loan, make sure that you compare the available offers. A few banks may offer lesser interest rates along with other benefits. Compare these offers and pick a home loan that suits your needs the best.

5. Use a Home Loan Calculator:

While making sure that the requirements for a home loan application process is ready, so is planning your repayment. Using a home loan calculator is considered to be one of the best home finance tips as it helps you plan your budget in a data-driven manner.

6. Understand Details About Your Interest Rates:

The interest rate that is offered for your home loan plays an important role in determining the cost of your home loan. Discuss with your bank regarding your interest rate, be it a fixed or a floating interest rate. This can help you stay prepared and estimate your repayments.

7. Get Pre-Qualified:

By having your home loan pre-qualified, you can speed up the entire application process and the verification process. To pre-qualify, you have to submit your financial information such as your income, savings, and investments along with your property documents.

8. Actively Respond To Your Lender:

If you are contacted by your lender regarding any further requirements or requests, make sure that you respond quickly. This can help the lender keep your loan application active and move ahead with the process quickly.

9. Understand Different Loan Options:

There are plenty of options available when it comes to buying home loans. For instance, you could either choose a fixed interest rate or a floating interest rate. Ensure that you check with your lender about all the available options.

10. Maintain Your Credit Habits Throughout The Process:

In the middle of the home loan verification process, lenders may check your credit score. So, it is best to continue good financial habits even while your home loan is being processed.

In a Nutshell

While opting for a home loan, it is important to understand all of its associated aspects. In addition, make sure that you plan your repayment schedule in advance so that you can financially prepare yourself. If you are looking to apply for a home loan, you can apply for one with Piramal Capital Housing and Finance and experience several benefits including quick loan sanctions.

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