Take your Home Loan Smartly

Thinking of taking a home loan? Comparing between different options on the basis of lowest interest rates? We suggest you to not go for a loan merely on the basis of the lowest interest rate. There are various other factors that must be considered and are generally left ignored. You would say that with so many banks and financial institutions available with wooing home loan offers, it is very tough for a common man to figure out the correct home loan lender for him. But, there is a set of factors that must be considered before seeking a home loan:

1.      Interest Rate

2.      Floating or Fixed rate

3.      Quantum of Home Loan sanctioned

4.      Time taken for the sanction

5.      Special offers

A Home loan seeker must keep it very clear in his mind that:

·         Lowest Interest rate is not the only factor on whose basis the choice should be made but of course it is a very important factor to affect the repayments.

·         Many times a customer applies for a home loan wooed by the low interest rate but the scene becomes terrifying when the financial institution takes a very long time to approve the loan and send the cheque.

·         While availing yourself of a home loan don’t forget to check the penalty for its pre-closure. Or Is there any additional charges if in the coming time you would like to shift the loan to some other bank?

·         Some banks have also got very beneficial additional offers with their home loan like the reimburse of the customer’s processing fee paid for the home loan and credited to his/her account if he/she refers up to 2 new customers.

·         The financial institution must approve the loan and release the loan cheques within 4 to 5 working days once all the documentation process is completed satisfactorily.

·         If a loan borrower has a good repayment track record of his previous home loan, he can avail his future loan borrowing at a lower interest rate.

Out there, it’s a jungle with numerous financial institutions and banks offering home loans with a variety of offers.  People often suggest going for the home loans from nationalized banks but one may consider other reputed home loans like HDFC Home Loan as well. We would advice the home loan seekers to do their homework with full devotion, checking thoroughly.