Things To Keep In Mind While Choosing Home Loan Lender

Buying your dream home is much easy and simplified because of the attractive home loan deals offered by private finance companies and banks in India. Whether you travel on roads or switch TV, check your smartphone or amidst listening to music you can always find advertisements with lucrative home loan interest rate deals offered by lenders.

There are many players out there who offer suitable and customized home loan solutions to suit as per your needs and prove affordable on your wallets. Due to the easy access to home loans, a large number of people can now afford housing loans to buy their dream abode. However, because of the stiff competition amongst the lenders choosing the right lender is getting more and more complicated day by day. There are hundreds of loan products and choosing the best among all could be challenging for the first time home buyer.

Let's understand that your housing loan is a credit that we borrow and we need to repay the money for a span of around 20-25 years and more than that. So, understanding the jargons, terms, and conditions, debunking the myths is very important so that you choose the right lender while planning to buy your home.

Few things to keep in mind while choosing your home loan lender:

Loan To Value Ratio

The maximum amount you can borrow as a home loan usually depends upon the income source of the applicant and the property value. Lenders will provide housing finance equivalent to 80-85% of the property value. It varies across banks and housing finance companies. So, it can be more or less as well. Your credit history, age, anticipated property value, and your job or business prospects will also be counted to decide the loan to value ratio.  So, it's important to understand the LTV ratio while choosing your loan lender.

Interest Rate

Well, its the crux of any form of a loan and it's the money that you pay towards the principal amount you borrow. It has the maximum influence on the EMI amount and the overall cost of borrowing. You can opt for fixed, floating or partial fixed-floating interest rate option which is linked with MCLR. The interest rate will vary across different lender and you should try to negotiate and find lowest interest rate to make the loan costs come down. There are leading online home loan aggregator sites that will help you compare loan in terms of interest rates, processing fee, LTV value, loan tenure, and more. Right from the cozy corners of your rental home or offices you can compare the best quotes and opt for a suitable housing loan. There are Interest rates calculators as well that will help you get a complete picture of your interest outgo till the end of loan tenure and how to choose an affordable EMI to repay the money.

No Hidden Charges

There are many housing finance companies out there who will lure you with advertisements, however, hidden charges erupt which might burn a big hole in your pockets. Initially they might sound very promising just to acquire business but later on, they might dupe you with unnecessary charges. The lenders might incur different charges one after another. Thus, it important you clear the cloud of uncertainty regarding charges and only then make an application online.

Turnaround time

The turnaround time will also count a lot before you apply for a home loan. Some of the lenders might take longer time for processing which might create a rift between the home buyer and the builder. Thus, they might lose on their dream property. Some lenders might disburse the loan within a week's time while some other will take a month-long time for the same function. Therefore, it's important you should opt housing loan from reputed players who have years of experience in loan disbursal.

Get an Online Access

Today, many reputed loan providers provide you with online access to the loan account. It has become an essential feature to keep a tab on your loan account and how are the charges applicable and monitor if the money your repaying has been reducing the debt amount or not. With the help of online facilities, you can get all information on the loan such as interest rate outgo, the principal amount reduced, loan tenure, monthly installment, prepayment charges, etc. 24 X 7 at your comfort and ease.