Home Loan Rates 2018 188 views
People generally start investing in property once they get a news about the lower property rates or slowdown in retail sector. Such kinds of slowdown news attract more people to invest in retail sector. They decide to own a property whether residential or commercial. Some people even apply for a home loan to own a property. But you should not forget that the process of borrowing a home loan is a bit different from getting loan for car or personal loan. As this is associated with higher amount and for longer tenure as compared to other loans, so the terms and condition and other process is a bit longer and time-consuming. As most of the banks ask for few basic parameters and information from the borrower to validate the information and disbursal of loan amount. So it is really necessary that you educate yourself and do some homework to increase the possibilities of getting a mortgage.
Improve your credit score: Credit score plays a really crucial role in getting a mortgage loan. If your credit history is not good, there are high chances that your loan might get disapproved. If you have a bad credit history and your CIBIL score is low in that case there is high proximity of rejection of mortgage application. Don’t default your payments for any kind of loan and credit card bills. If you delay or default your payments, it will affect your CIBIL score. If you are planning to avail a loan in near future, you should start building a good credit history to avoid any rejection.
Payoff unsecured loans: If you have taken any personal loan any other unsecured loan, try to pay off that loan before applying for the mortgage loan. Too many personal loans and unsecured loans can land you in negative ranking. Make timely payments against all running loans on your name or on those loan in which you are a co-borrower. When you are calculating how much money you can avail from mortgage loan also include your other loan EMIs. Your loan EMIs will affect the maximum loan amount slab as banks will consider your other financial liabilities and repayment possibilities of borrowed amount. It is recommended paying off your unsecured loan first before applying for mortgage loan.
Save some money: Don’t totally depend upon that loan amount only. You will never get 100% amount for buying a property as loan. All the banks offer you an amount, which is considered on different parameters such as your monthly salary, other running loans and financial liabilities, value of property, your saving, etc. The banks can offer you maximum upto 85% of loan amount for buying a property if you have good CIBIL score and higher salary and less financial liabilities. So always remember that the remaining 15% of amount you need to arrange yourself. Therefore, try to save as much as you can before applying for a mortgage loan. It will help you get a lower loan and reduce your financial burden as well for longer time.
Get a guarantor for your loan: If you know that your CIBIL score is not good enough and you have small saving with you. You can ask your spouse or family members to be a guarantor in your mortgage loan. It will help you to increase your possibilities of getting the loan.
Get pre-approved mortgage loan: Getting pre-approved for a mortgage will give you peace of mind and you know your financial limits in advance. It will help to bargain and negotiate for property in a better way as you know the upper limit of loan in advance. You will not get trapped of buying a house, which is not within your budget. Therefore, a pre-approved loan will enable you to search a good property within your financial budget.
Apply to your home bank: This is the better option to improve your chances of securing a mortgage loan. Apply with your home bank in which you are having your saving or salary account. It will require less paper work as well the chances of getting your loan approval are higher as the bank is very well aware of your financial cycle and savings as well. So apply with your home bank for getting better loan deal and interest rate.