7 Golden Rules To Follow When Taking A Home Loan

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Purchasing a home of your own is a dream come true for us. Either an established businessman or a working corporate, you need a shelter whom you called your own. This shelter comforts you after you have a day long struggle at your workplace. Hence, the value of owning a dream home that caters your comfort and peace gets doubled up in today’s world. But owning a home without getting any help from the financial institution or bank is again a tough task. It is a common thing to seek support from banks and other financial institutes to book a home of your own choice.

If buying a home is in your cards soon, this article gives you a complete insight of top 7 golden rules that are must to be followed while applying for home loan.

Know Your Eligibility

It is often said that keeping your feet on the ground and dreaming to touch the sky gives your dream a factual support. Hence, it is an important step that should be taken at priority if you are planning to seek financial support. The amount of home loan that is offered by various banks depends upon various factors such as you should have a positive past record and your transactions should support your stability with financial transactions. So, if you are taking a home loan, you should check your eligibility with the bank or another financial institute.

Know Your Credit Score

If you possess a good credit score, it becomes easy for you to maintain your eligibility with the application for a loan. Credit score gives you an opportunity to check your CIBIL and it falls under 300 to 900. These points are calculated on the basis of your transactions and credit card payments on time. Before taking a home loan, you should maintain a good credit score of yours. It is mandatory to maintain at least 750 points to check for eligibility for applying for a home loan from a trusted financial institute.

Selection Of Lender

Before taking a home loan, you are required to do your homework with full research. It is important to check with various banks and financial institutes that offer a home loan. Before going ahead with a particular institution, you should know the rate of EMIs, tenure and other hidden charges if applicable to your loan amount. Hence, it is important to know your lender properly before opting for taking a loan from him.

Know The Interest You Will Be Charged

Another point that should not be missed is that you should better know about the type and amount of interest that would be charged to you by your lender, once you take the home loan. You should also be aware of the fact that the interest charged would be on the whole amount or on the reducing balance.

Tenure Of Home Loan

Check for the tenure, type of EMI and its affordability to you. It is important to opt for a home loan where tenure of the home loan suits your pocket. Also look for the tenure that is comfortable for you. Higher the amount and lesser the tenure of EMI sometimes become a big issue for an individual. Hence, depending upon your paying capacity and affordability, you can select the best option for you.

Charges Or Any Penalty

Apart from the home loan, you should also have a thorough knowledge of what are the hidden charges while opting for the loan or what are the associated penalties that are applicable if you fail to repay the amount of EMI on a fixed time. All these important aspects should be well studied and understood before applying and taking home loan from a specific bank or institute.

Opt For An Insurance Policy

In case, the amount of EMI, you have opted for is a bigger amount, it is always advisable that you should go for a complete insurance coverage. In case of any mishappening, the due payment will be paid to the insurance policy. This gives you a surety that your family will be allowed to stay in the home. There are many insurance companies that offer a good insurance to you and your applied home loan.

Keeping all the points in mind, it becomes easy to take and continue with the home loan without any hassle.  Hence, it is important to make sure that you apply from reliable bank institute. There are many banks and financial institution that offers instant approval loans to your expected amount on the basis of property. They offer the quick disbursals and easy processes. With the help of following these steps, taking a loan appears to be an easy process.