How to Grab The Best Home Loan Deal?

Your home is one of the most ever prized possessions that you own in life. It’s like a onetime investment for your lifetime. After lot of brainstorming, careful inspection of place of living, area and amenities you come to a conclusion to buy a particular dream home. With the emerging housing finance from leading banks and finance companies it has now become quite an easy task to get necessary financial aid to buy house. Today, leading banks and finance companies in India offer house loans to people to buy, construct, renovate, improvement or extend their housing requirements. But the most important parameter that decides your home loan is the loan eligibility, income source and the installment that you can afford to pay towards the banks or finance companies.

Your credit rating is one of the important references to avail housing loan. It is very important that you always pay your bills on time and never miss a payment. When you have this type of history paying bills your mortgage lender believe that you’re responsible with your housing loan. When you want to get approved for your housing loan, be sure you’re current debt are taken care off very well for some time before you apply for a housing loan.

Some important parameters that need to be address carefully before applying for house loan are as follows:

Employment history

When an individual has been employed in the same job for more than 2 years, it shows you have stability in your income source and lenders will be willing to approve your loan. It is advisable if you have been in your job for a year and are considering quitting or changing it, holding on your horses until your loan get approved and you buy a new house would prove beneficial.

Debt

Any debt will bound to hamper your credit rating. It means you’ll be qualified to low loan amount against the desired financial needs. Your debt to income ratio is considered when you apply for a housing loan then you need to make sure you clear off as many debts as possible in order to favour your home loan lenders.

Savings

Banks or finance companies provide loan upto maximum of 80% of the agreement value of the house. Every bank or finance company has its own criteria under which you will have to show the margin money of around 15 – 20% handy before applying for loan. Therefore, make sure you have saved at least 20% of the down payment and also have little extra savings to cover a few months of your home loan payment. Recession, health risks or other perils don’t come knocking at your door so it’s better to be prepared to cover your expenses for couple of months. This shows your well preparedness towards your loan and you will have more probable chances for hosuing loan approval.

In India, there are various types of customized home loans to choose from. Always choosing the first one is not an intelligent option. Instead there are online sites that will help you compare the interest rates, pre & post penalty charges, EMI delay charges, interest rates and flexible repayment options. So, visit online and compare your loan. Also, you need to know how much you can afford it. It would be best, to check online through housing loan eligibility calculators what amount you get pre-qualified for a loan. It helps you understand how much you can afford for a home and about the mortgage payments would come up to. With internet-based services, time is spinning across compared to age-old process of visiting banks, filling up forms, getting copies attested and submitting them. With online service you can fill the relevant form, attach a scanned copy of relevant documents and submit the same online for approvals.