Buying a home has become very easy with the arrival of a home loan. With easy access to home loans, many people are now able to buy a house without much financial pressure. Buying a home through a home loan is quite easy but finding the right lender is getting tougher every day. There are hundreds of home loan lenders in the market. Choosing the best of these is a challenge for first time home buyers.
The customer taking a home loan pays it for a long time. The home loan usually lasts for 10 to 15 years or more. When you plan to buy a home by taking a home loan, choosing the right lender becomes an important priority.
Today, the line of home loan lenders is long. Most of them entice home loan customers. Lenders continue to offer many attractive offers, which strengthens their presence in the market. Some lenders offer you zero processing fees, while many lenders waive the EMI of the initial months.
In fact, such extra attractive offers make the right choice of lender more confusing for home buyers. To end this kind of confusion forever, we are putting some points in front of you, which will help you find the best lender for a home loan.
Keep these things in mind while searching for a lender
Rate of interest
The interest rate is the factor that has the most impact on the EMI amount as well as the cost of the loan. Nowadays almost all home loans come at floating interest rate which is linked to MCLR. The interest rate of a home loan is different for every lender and you need to find the lowest interest rate to reduce the cost of the loan. It may also happen that a lender gives a loan to two customers at different rates. For this, you have to compare the interest rates of various lenders, so that you can choose the best.
Loan to value ratio
You can take the maximum amount in a home loan. It depends on the income and property value of the applicant. Most of the times, banks provide home loans 80 percent of the value of the property. But not all banks are the same. Many banks give you more loan amount and many less the amount on the purchase of the same property. Therefore, looking for the lender, also check the loan to value ratio.
Nowadays most lenders give you online access to the loan account. This online access is an important feature. At any time with the help of online account, you can get any information of loan such as interest rate, outstanding loan amount, remaining period, next home loan EMI etc. This is an important facility and if the lenders offer this facility then you must choose it.
No hidden charges
In many cases, lenders cheat customers by hiding some fees from them. While giving loan, do not tell the customer about fees and charges. Later, the lenders levy a fee on the customer. Every single day is like theft and the customer should be careful about this while choosing the lender.
Easy pre-payment facility and zero foreclosure charges
The tenure of a home loan can last up to 30 years. To reduce financial pressure, a person can also choose a tenure of 30 years while taking a loan. But with the passage of time, when you have more money, you can get rid of debt by paying some part of the home loan in advance. In such situations, if the lender does not give you the option of pre-payment then it will prove to be a big blow to your financial life. Therefore, make sure that the lender has the option of pre-payment and part payment in the loan agreement.
The amount of money you will get after applying for a home loan is also an important factor, which you will have to check before taking a loan. Many lenders take a long time to process a loan, causing confusion between the builder and the customer. Many banks send money within a week, while many spend a month in this work. Therefore, before applying the loan, you must find out the time of loan approval.
Processing fees vary from lender to lender. This loan is based on the amount. If there is more loan amount then there will be more processing fee. Currently, the processing fee in SBI Home Loan is 0.25 percent and the processing fee in ICICI Bank is between 0.50 percent to 1.00 percent of the loan amount. Before choosing a lender for a home loan, know the processing fee. Additional fees and charges completely determine the total cost of borrowing, so you have to be careful about those charges.
Buying a house is one of the important decisions of life. So customers should watch every process of buying a house. In this case the internet is no less than a boon. You can get every possible information about home loan from internet. So get as much information as possible so that you do not have to regret the decision to buy a house in the future.