After people find their dream home, one of the most important transactions of their lives is the next step to take. To pay for the houses, buyers invariably seek home loans. Given the long term involved in the repayment of these loans, there is always a certain level of confusion in understanding the actual nature of repayments. The time value of money is a concept that is not hard to grasp but banks have to be proactive in showing people how the concept works.
But usually the employees at lending institutions do not have enough time to explain the nitty-gritty’s of it all, and therefore it is easy to fall into a loan trap.
Housing.com has established a home loan section where consumers are able to find their housing loan eligibility along with numerous home loan plans which suit their requirements. One can apply on the website and even track the application from there.
So how should one find the right plans and select the ones which are best for their requirement? Here are 5 tips.
- Do not rely on people selling loans
The primary requirement of a home loan seeker is to not go for plans which are merely being sold to them by someone. Most of the times, the people who are in the customer service seat have their own targets and they have to sell a minimum number of plans to earn their incentives. Therefore they try and project expensive plans as good and try to convince home loan seekers by explaining the benefits derived from such plans. Since the long term payment details are usually fuzzy for home seekers, it is easy to fall into the expensive home loan traps and pay more when one could have paid less.
- Know all about home loans
Housing.com provides a home loan guide which is a comprehensive repository of information pertaining to home loans in India. The guide highlights the common details that people are ignorant of. It starts with an explanation of common terms and goes on to exhibit how to apply and service home loans. It has been written in a simple language so that users do not find it difficult to understand.
- Know your home loan eligibility
Knowing one’s housing loan eligibility is a good way to assess and choose home loan plans. This is why housing.com has provided a home loan eligibility calculator which requires basic income and expenditure details to highlight how much loan amount is a person eligible for and how much EMI would one have to pay for the said amount. Such knowledge allows one to budget the expenses and have a clear idea about how much would they have to earn and spend to service a home loan effectively.
- Know about your CIBIL scores
An important part of obtaining home loans is to know about one’s CIBIL scores. CIBIL scores are a good indicator to find out whether a home loan would be granted or not. Therefore if one has a bad CIBIL score, there are ways to improve it and thus the chances of getting the loan application approved can be enhanced.
- Compare and choose
Looking through numerous plans and only then settling for a feasible one is the best way to choose the right kind of home loan.
Bearing in mind a few simple tips can help prevent a long term financial hear burn. Home loans need to be right to ensure a home owner’s happiness.