A home loan is your best source of finance when it comes to purchasing the dream home. If you have an eye on a property and you want to purchase it using a home loan, Best thing is you can take home loan online also, here are the most important things you must check before filling out the application form.
Let’s have a look at list of important things :
1. Principal Loan Amount
The loan amount the lender offers must be sufficient to fund the property you want to purchase. Know the property’s price, assess your savings, and ensure that the loan amount they offer you is enough for the purchase. Assess your loan eligibility when you apply for an online home loan.
2. Repayment Tenure
Check the repayment tenure before taking a home loan. The lender must offer flexible repayment terms. You can use the home loan calculator to determine a tenure that suits your requirements. Using a home loan EMI calculator, select a loan term suitable to your repayment capacity.
3. Interest Rate.
The interest rate makes a big difference in your home loan cost. The higher the interest rate, the more will be your outgo. Therefore, the goal should be to check the interest rate and find the lender offering low interest home loans.
4. Processing Fees and Charges
Apart from the principal amount and interest rate, processing fees and other charges also make up the total loan cost. Therefore, call your lender or check their website to find information about these charges. Compare the rates to get low interest home loans.
5. Eligibility Criteria
Different lenders have different eligibility conditions that the applicants must fulfil while applying for an online home loan. These often include the applicant’s age, income, employment, etc. Before applying for a home loan, check their eligibility criteria to ensure that you qualify. If not, the lender will reject your loan application, which will waste your time and reduce your credit score.
6. Documentation Requirements
Although most lenders have minimal documentation requirements these days, you still need to provide a few documents. Usually, address, income, and identity proof, like your Aadhar card, passport, bank statements, etc. are required. Therefore, check the lender’s documentation requirements to ensure all the documents are ready.
7. Credit Score
The credit score is one of the most crucial factors lenders use to calculate your loan amount and interest rate. The higher your credit score is, the more loan amount you qualify for and the lower interest rate you will need to pay. Therefore, before applying for a home loan, check your credit score and ensure that it meets your lender’s minimum credit score requirement.
8. Application Procedure
Check the lender’s website and know their loan application procedure. If you are applying through the lender’s app, see what you need to do to apply for an online home loan.
Whichever method you are using, ensure that it is convenient, and easily complete all the formalities involved. Many lenders support an online application process – complete the process from your smartphone, laptop, or another device itself. Please note that some steps such as property evaluation will have to be done physically. Check the lender’s application procedure before proceeding.
9. Approval Time
Earlier, applicants had to wait for months to get their loan approval. These days, NBFCs have accelerated the loan procedure due to minimal documentation and KYC updation.
Now that you have found your dream house and want instant money to fund your purchase. You won’t want to miss the deal due to the slow loan processing by your lender. Just remember NBFCs have faster approval processes as compared to banks. Therefore, find a lender that offers fast and swift loan approval within hours.
10. Down Payment Requirement
When you decide to fund your home purchase with a home loan, you have to pay a certain amount of its price as a down payment. Check your lender’s down payment requirement to know how much you need to pay from your savings.
Most lenders offer down payment upto a maximum of 80-90% of the value of the property. The percentage offered depends on the borrower’s eligibility. Just remember, the lower the down payment, the higher is the loan amount borrowed, which will in turn lead to higher interest rates and EMIs.
These are the top 10 things you must check before applying for a home loan. The key is to compare lenders, understand their terms and conditions, and ensure eligibility for low interest home loans with the most favourable terms and conditions.