Buying a home is a dream for most of us. However, the prime factor which comes to our minds when searching for a home is whether we can afford it or not. If you too are biting your nails and thinking hard to solve your problem with the next best option, it’s time to get acquainted with home loans! Most financial institutions of India, like Indiabulls Housing Finance, offer attractive home loans with upto 85% of the property cost. While on one hand, it sounds great that you can get a lumpsum amount to find your own place, it is also important to remember that a housing loan is almost a lifelong commitment. Harping on to the fundamentals of this, it is essential to choose a loan which caters to your needs.
Things to remember before choosing a Home Loan
You must keep the following factors in mind while choosing the right home loan for you.
What is the loan term?
This is one of the prime factors while opting for a home loan. Check for how long you can take to repay the loan. Generally housing loans can be repaid in 15, 20, 30 or 40 years. The longer the tenure of the home loan is, the lower is the monthly instalment. Another factor which must be kept in mind is that the interest rate on home loans is lower by approximately 1% for a 15 years loan term than a 30 year term. As a standard, the loan term depends on the age of the applicant and the term of service.
What is the interest?
Interest on loans is evenly charged via the monthly instalments. While some financial institutes charge a fixed rate of interest, others have flexible rates. A fixed interest rate remains same till the tenurity of the loan ends. A flexible rate varies whenever RBI changes the home loan interest. Although the latter is a bit risky, it should also be taken into note that if the rate decreases in future the borrower might just be in a win-win situation! While choosing a home loan, consider this factor. If you are ready to take a bit of risk, it is advisable to opt for flexible rates. The loan consultants from the financial institutionhelp you decide which kind of interest rate is the best for you.
Is there any option of pre- closure?
Opt for a home loan which can be closed prior to its tenurity. In future you might be in a better financial position to pay off the complete loan amount. Why should you carry the burden of a home loan through your life when you can pay it off later? So, in that case the financial institution should provide the approval to do so without any penalty charges.
What is the time of loan disbursal?
This is another factor which plays an important role while choosing home loans. It is tough to find that dream home and after finding it you should have the capability to book it instantly. Choose a financial institution which can provide you with the loan amount in the least amount of time. Generally, the financial organizations in India, like Indiabulls Housing Finance, take 4-5 business days to approve a home loan. So, choose an agency which is known to have a strong financial system and excellent after-sales service.
Is there any expert consultation?
These days several lending institutions assist prospective buyers in choosing the right property. Their expert consultation not only helps you go through the verification process seamlessly, but also legal property according to your affordability.
So, find the right home loan as per your needs, and fulfil all your dreams of making a loving home out of a house! Reach out to Indiabulls for further assistance.