Looking for home loan? 3 Things to Keep in mind while you choose your lender!

Looking for home loan? 3 Things to Keep in mind while you choose your lender!

After years and years of planning and saving money, the point has come when you can FINALLY think of going through options of having a home of your own.

Now that you know what you can afford to have and what matches your requirements, the next step is gathering money for this huge project.
For this you need to identify the lender who will provide the loan you need to make your dream come true.
The task might sound easy but trust me, it is not
There are hundreds of number of financial institutions and banks who will be convincing you to take the loan from them.

You can always start off by going through some search engines which will give you comparisons about who offers what kinds of loans.
Rishi Mehra, Co-founder, Deal4loans.com, a loan comparison service engine gave us some insights about what matters the most in such a scenario.
He says,
“Eligibility criteria, interest rate, processing fee and other factors will be key to deciding your lender,"

Now we shall guide you through the steps of this research which is no less than a daunting task.

Let’s get started!

Decide how much loan you want and if you are eligible for it.

The amount of loan you are likely to get is directly proportional to the monthly income and the value of the property you are looking to buy. "For property valued up to Rs 30 lakh, the customer can avail of a maximum of 90% funding, subject to his income eligibility as assessed by the lender," says Mehra.
Keep in mind that the loan amount would be 80-85% of the property’ value you have in mind to buy.

Dispersion Time

Banks have an average time of 5 days to process a home loan, given that you have gotten all your documentation in place.
"There are a number of post-disbursement services involved. These include getting regular account statements and interest certificates on time every year. Choose a lender with strong systems and good record of after-sales service," says Shetty.

Mehra says, "try to choose what is best suited for you rather than just judging them on one single factor. It will help to close on the best housing finance partner.”

Interest rate

You sure as hell need to keep in mind the rate of interest on the loan, because at the end of the day it will influence the EMI and the total interest paid by you, so be careful before you apply for the home loan. It's a good idea to Shop around for rates and choose the most suitable one. You also need to find out if the rates are fixed or floating. If you have no idea what these are then Google them. A brief intro is that When rates are fixed, there are no fluctuations. Floating rates vary according to market conditions. "Fixed rate of interest is 25-100 basis points higher than the floating rate. For a shorter loan tenure of 2-5 years, it is better to opt for fixed rates. But for a longer tenure, floating rates works best," says Mehra.

At the end of the day, it's you and your own level of satisfaction that matter the most, we are just here to guide you. Good Luck with choosing your home!