4 Essential tips while choosing your home loan lender

Owning a new home could be the most memorable moment of your life. It will give you a sense of achievement and satisfaction of building a nest for your family. However, with the continuous skyrocketing real estate prices it has become nearly impossible to fund your dream home with the little savings over the years.

So, applying for a home loan would be a smart way to fund your dream property. Today, there are leading housing finance companies and banks out that offer customized home loan solution to the borrowers. You can apply for housing finance to buy a new or resale property, for home renovation/extension, buy plot land, top up on home loans, etc.

‘How to get the best home loan deal’ is a very common question amongst the potential borrowers, when considering a housing loan to buy the dream home. Since you will have to repay the loan for around 25-30 years to the lender it would definitely be worth to compare and choose your lender carefully.

Keeping this in mind, we offer 4 essential tips to choose the right lender to avail home loans from:

Compare home loans

Most people in their quest to avail finance just apply with the first lender who sanctions their loan. However, it would not be a wise decision as there might be other lenders out there who would be willing to offer you some better deal. It will definitely save thousands on your wallets. So, one of the wisest things would be looking for the right loan lender by comparing them.

There are leading home loan online aggregator sites that will help you compare apple-to-apple in terms of interest rates, processing fee, loan disbursal value, EMI, interest outgo and tenures available. Most lenders might sanction up to 80-85% of the property costs and the interest rate would be merely 8.35 % starting onwards. You can get maximum tenure of 25-30 years as well if you apply at a younger age. So, it proves to be a million dollar decision to compare the home loan products and then zero in on a particular lender.

Charges Applicable

Although, it won’t have a lion’s share in your home loan, however, it will seriously give a pinch in your pockets in the long run. Each lender will have a list of charges that will vary in numbers compared to the other lenders. Some common charges to watch out for would be the processing fee, document handling charges, Part Prepayment Fees, Cheque/ECS bounce charges, Cheque / Repayment Mode swap charges, Charges of statements, prepayment charges, Conversion charges, etc. So, it’s important you visit a particular site of the lender and confirm all the charges and then make an application.

Credit Score

One of the most important things to sanction your loan is the credit score. Every lender would evaluate your score and accordingly give go-ahead for the loan. It’s basically a score assigned for your repayment history.  If you make timely repayments, clear all the doubt, don’t go into loan repayment default that you would be given a score between 300-900. A score of 750+ is considered an ideal one to negotiate for low-interest rate deal.

Check the Reviews

There are thousands of applicants who must have gone through the process of comparing home loans and choosing a lender as per their financial requirements. They definitely add a review and it will help build an opinion of a particular bank or housing finance company. So, it would be worth visiting the home loan aggregator websites to see what these individuals are saying about the lenders.

Now that you’re aware of the essential tips, follow them and apply for home loans online today!

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