Friday, 30 June 2017

Which home loan is popular? Why?

Buying a house and making it their home is a dream of every individual, and home loans are the way to get to your dream home.
In India the demand for Home loans are rising on a daily basis due to many factors such as affordable homes in many township projects, Government subsidies for first home, tax benefits and also competitive interest rates by various banks and non-banking financial companies. Today customer is the king to afford and avail various benefits for buying his own home.
Every day ample number of people apply for home loans, some pass the door of dreams when their loan gets sanctioned, but many are pulled back because of low cibil score.
It is very important to check your cibil score before you undergo the process of availing any loan. Cibil score calculations can be done by various mediums and if your cibil scores are low than the eligibility score, then to avail a loan you will have to wait for some more time to get your dream home.
Buying a home takes years of planning, savings and patience. Imagine you thinking this is the right time to buy a home and you are being let down by your cibil score calculations.
There are different types of loans you can ail in this vertical,
1.       Loans for home purchase
2.       NRI home loans
3.       Loans for home construction
4.       Loans for land purchase
5.       Home Improvement Loans
6.       Home Expansion Loans
7.       A loan for home conversion
8.       Balance transfer loans
9.       Stamp Duty Loans
10.   Bridge Loans
Once you have an idea about your cibil score calculations and decided which type of loan you want to avail, the next step would be to choose from where you shall avail the loan. There are different banks like HDFC, AXIS Bank, ICICI and Non-banking financial services firms like Indiabulls. They all have different services and offers they provide in regards to home loans and products related to home loans.
One can easily get in touch with the bank directly or take assistance from the vendor you are purchasing the house from. It would be suggested to do a thorough research on the home loan market offerings which would suit your criteria’s to avail a loan.
There are some points which you can consider while availing a loan:
Healthy CIBIL score is the key
As we all know good cibil scores leads to fast processing, the lender can reject your application if your cibil scores are low. Make sure you make your payments on time so that they don’t reflect on your cibil ratings.
Poor credit scores will delay your home loan
As explained earlier low cibil scores will delay your chances to avail a loan and will postpone your dream to get a home. Traditional banks may reject your application but you can still try getting the loan processed by an NBFC like Indiabulls home loans at a bit higher interest rates.
Always choose lower interest rate
You have many banks and NBFCs which can offer loans and there are many websites as well which will provide you with all the information on home loans and various interest rates to offer, so choose your lender wisely as taking a home loan is a long term commitment.
Types of interest which suits you
As there are many types of loans, also there are types of interests i.e. fixed and floating. A fixed interest rate will be fixed throughout your loan tenure and floating will fluctuate according to financial market trends, many avail floating interest rates as it gives a flavor of uncertainty and you can benefit your pocket when the interest rates are low.
Foreclose your home loan if you can
It would be suggested to consult an expert to foreclose the loan, as tax benefits, appreciation on the property, etc. make sure you have done your due diligence before you take this step as sometimes this could lead into a minor loss.
Home Loan is a long-term commitment so don’t get trapped by various market offerings and choose an appropriate home loan product after due diligence.

So, A better home loan would depend on your credit score, better deal offered to you, interest rates and the final tenure. Always make sure that what you are going for is the prefect purchase for you!

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