A housing loan is a convenient means to fund your dream home. It helps you purchase a house without creating a hole in your pocket. However, for some, availing a home loan could be a complex process with multiple paperwork and procedural requirements.
But worry not. Here are some important tips that can help you apply for a housing loan hassle-free.
- Do adequate research
A home loan is a long-term financial commitment. Therefore, you must be well researched when you choose a lender. You must identify the lender not only based on the interest rate but also on other features and facilities they offer. For instance, ensure that the lender has an online presence and a seamless interface along with facilities like overdraft and top-up home loan. Moreover, you should also take feedback about the lender from online reviews or old customers. The best idea would be to identify your needs and accordingly compare lenders to choose the right one for you.
- Choose the ideal tenure
Tenure is a crucial part of the home loan. It not only determines how long you would pay the EMIs but also how much. If you choose a longer tenure, your EMI will be lower, dispersed over a longer time frame. However, it would increase the interest outgo and the total cost. On the other hand, a short tenure would help you close off the loan faster. However, it can put pressure on your daily expenses. While you apply for a home loan, look for an optimal tenure that is neither too long nor too short. If needed, you can consult a financial advisor to help you choose one.
- Keep documents handy
It’s imperative to furnish all the required documents while applying. For hassle-free approval, keep all the documents handy. Check with the lender’s website for a list of documents so that you do not miss any while applying. Also, ensure that the documents are updated and accurate. Often lenders reject the loan application if the documents are incomplete.
- Check eligibility
Unless you meet the required eligibility, the lender might not approve your application. Check your eligibility from the lender’s website and apply only when you fulfill the required criteria. The standard eligibility is based on your age, income, qualification, credit score, etc. It is important to have a credit score of 750 and above to get your application approved. Check your credit score and credit report before you proceed with the application process.
- Check the charges
Lastly, do not forget to calculate the total cost associated while availing a home loan. Different lenders have different processing fees and other charges. You must inquire about them beforehand and choose the lender that charges you the least.
While you must submit all the updated documents, you should also fill in the information accurately. The application form should contain your details accurately as lenders process your application based on the details mentioned therein. Also, a lot of significant information is mentioned in the loan agreement. Ensure to read the fine print carefully for comprehensive knowledge of the loan while applying.