Points To Consider Before Applying For Home Loan

Home loanReal estate developers are working very hard to make your dream of owning a house come true. Most of the people go for home loan while buying a new home as it saves you from the tax and also reduces the burden of paying the entire amount of loan altogether. There are many points which are to be considered before applying for home loan. If you are not active before applying for home loan then you can make mistake and have to pay more interest and other payments then you actually need to pay.

  • Know your loan eligibility

One of the important factors to be considered before applying for home loan knows your loan eligibility. The amount of loan which banks sanction depends upon your past record of repayment of loans, your income and your credit card dues. Before applying for home loan, you must check whether you have been regular in paying all your dues and previously taken loans. You must have a check that how much amount you can spare on the monthly EMIs from your regular income. Before you apply for home loan, you must be aware that this much specific amount you are going to spend on EMI. If you are able to spare this amount then only apply for home loan. Usually banks offer loan up to the 80% of the total cost of your property but this is not compulsory.

  • Check your credit score

Before applying for home loan, you must have a check on your credit score. You will get your credit score between the scale of 300 and 900 points. These points are assigned to you on the basis of your existing liabilities and loans, loan repayments, bank account statement, credit card bill payment and also on the base that how much time you have applied for the loan till now. This all things are taken into consideration while applying for home loan. For knowing the credit score, if you are paying processing fees to three to four banks to know the maximum limit of yours then you can be called as credit hungry according to CIBIL and the chances of getting loan is reduced. This CIBIL rating gives the net salary excluding your variable heads and existing EMIs and loans as it predicts the vital capacity of the person applying for home loan to repay it.

  • Choose your lender

A very important factor to be considered while applying for home loan is your lender. Make sure to do a detailed research while finding a financing company or bank while taking home loan. Also see what are the terms and conditions of giving a loan and also see the interest rate and tenure of the loan. Interest rate is very important factor but this does not mean that you should avoid other factors like customer service or the charges if there is early termination of the home loan. Check these details before you choose the lender for your home loan.