Best tips to get the best home loan offers:

The home loans can be availed at the lowest interest rates by the applicant by doing a thorough check on the internet regarding the interest rates charged by the lenders. The bank charges interest rates of 6-9% per annum on home loans. The loans are being calculated on a cumulative basis by the bank. Thus the interest repayment on a compounded annual basis is far higher as compared to the simple interest. The applicant can check for the interest rates being charged & the repayment value on the loan and the home loan eligibility on the EMI calculator. The bank also charges the processing fees to the borrower on the home loans. The processing fees are usually 1% of the loan amount or Rs.10,000, whichever is lower. However, the rate of processing charges may vary differently for different lenders. The bank requires proper documentation for the approval of the loans. The applicant should have government identity proof, income proof, employment proof & ITR returns being filed. As per the RBI mandate, it is a necessity that the borrower should file for the income tax without which loans cannot be approved.

The bank’s interest rates can be negotiated in case of a good CIBIL score. An individual’s credit score plays an important role in the approval of the loan of the borrower. The bank is cautious while approving the borrower’s loans as the loan being disbursed should not turn into bad debt. The banks may also reject the borrower’s loan due to low monthly salary, not maintaining sufficient bank balance in the bank account, not being to provide income proof to the lender, high age of the borrower. The maximum age up to which the bank can approve the loans is up to 60 years or retirement age, whichever is early. The borrower’s age is also the necessary criterion as the banks are not interested in extending loans to the borrowers who have very little age for retirement. The ideal age for availing of loans is from 30 years to 45 years. As this age group, people have many years for retirement and are considered amongst the people who have a stable income and are well settled due to many years of service. If added as co-owner, the women can avail of lower interest rates as there is a concession for the women applicants from the banks for the interest rates being charged.

Following are the tips to get the best home loan:

• Pay more amount as down-payment:

The borrower can pay a higher amount as a down payment to avoid the higher burden of loans. The higher down-payment can lead to a lower burden and thus lower interest repayment to the borrower.

• Check your credit score:

The credit score should be at least above 700 points and above, which is the bare minimum criteria of the bank. A below score of 700 points can lead to either rejection of loans, or else the bank may charge higher interest rates to the applicant. Thus the applicant should check the credit score and should try to improve it if it is less.

• Compare the home loan offers:

The interest rates charged should have thoroughly been checked and the banks’ processing fees. Sometimes the bank may charge lower interest rates and higher processing fees or vice-versa; in that case, the customer should be alert on the charges being levied by the borrower.

• Identify which type of repayment is suitable for an individual:

There are two types of repayment: fixed interest rate repayment and another is flexible interest repayment. The interest rate being charged for the flexible interest rates is lower and thus higher for fixed interest rates. Still, according to the market conditions, the borrower should understand what is beneficial to them and accordingly should avail loans.

Conclusion:

Thus choosing the right lender is necessary for an individual before availing of the loans. The right lender can provide the best service, quick disbursement of loans and may not mislead the borrower and also can help save lots of money on interest repayment. Thus getting the best offer on loans is dependent on choosing the right lender for the loans.