Important tips to consider before taking a Home Loan

As per recent data, the RBI recently linked the risk weight of home loans to LTV ratio, as applicable to all new housing loan sanctioned up to March 31st, 2022. This particular facility seems quite beneficial for the real estate sector, as it is expected to generate more revenue within the next few years.  

Even though all these aspects have made a positive impact in the home loan segment, individuals are still required to keep certain things in mind before availing this advance. Borrowers inevitably come across a few components of housing loans that play vital roles in the credit sanctioning process. 

In order to make sure the process goes smoothly, here are some important tips one should consider before they avail a home loan:

• Compare different lenders

Depending on how much your equated monthly interest or EMI will be against the home loan, you can choose the tenor and total amount conveniently. Therefore, it is advisable to go through what different lending institutions are offering as interest rates before making a decision. 

• Maintain a healthy CIBIL score

No matter what strategy you have decided to apply in order to smoothly handle the repayment, a poor CIBIL score can hamper all your future plans. Make sure to keep a good repayment track record and maintain a credit score of 750 or above to meet the home loan eligibility criteria. 

• Foreclosure rules

Usually, it helps the borrowers to settle the outstanding home loan amount before its tenor ends. Therefore, along with other important aspects, you also need to ensure that your preferred financial institution does not impose any foreclosure penalty in case of early repayment.

Additionally, going through the home loan documents properly, making a sizable down payment, paying heed to additional charges, etc., should also be prioritized before you apply for a home loan.

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Myths to Ignore While Getting a Home Loan

Many people may have the required eligibility to apply for the home loan, but they still don’t apply for it. 

Other than facing different issues, they also don’t do that owing to some home loan myths. 

Let’s check them out in today’s post so that you can ignore them and apply for the housing finance confidently!

1. Shorter loan tenure is good 

Yes, when you avail shorter loan tenure, then it means saving on the home loan interest rates. But you also need to understand that it means paying a bigger loan EMI amount that may affect your outlays. It can leave little scope to concentrate on other outlays. 

2. Good cibil score comes with the loan approval 

Yes, the cibil score is one of the key factors while determining the home loan eligibility of the applicant. If it is higher, then you may get the loan approval. But factors like your income, age, job stability, employer credential, property location also matter.

3. Home loan rates are not negotiable 

You may still believe that home loan interest rates are not negotiable. But this is far from true! If you are not satisfied by the home loan rates by lenders, then you can always negotiate for a lower rate. Having a good cibil score, repayment and employment history may help you get an affordable rate of interest. 

4. Lenders levy heavy penalties for making prepayments and foreclosure

Another myth doing the round is that if you make prepayments and foreclose the loan earlier than the tenure, then you need to pay exorbitant charges. It is not true! Lenders are not supposed to charge any amount on floating rate loans. For fixed rate based housing loans, your lenders may ask for some money. It may vary from one lender to another. 

You are now aware of the leading home loan myths that you can now ignore and apply for a home loan with confidence. If you are ready, then you can now apply for the housing loan by comparing different loan offers online. This way, you can pick the best deal matching your needs and repayment capacities.   

Must Read: Home Loan EMI: 6 Ways You Can Reduce It Easily

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Why Pune is a Favourite Destination for Real Estate Buyers?

Pune is a booming city and the population is also increasing in the city for a number of factors. First of all, due to education and job opportunities, many students and professionals are settling down in this city. This has caused the rising demand for better residential projects in Pune.

But before anything, one has to choose the reputed property builders such as the Kolte Patil Life Republic. It is because of such leading developers one can find suitable living spaces in the city.

In order to know why buyers are inclined to buy real estate projects in Pune, let’s discuss in detail-

# Higher Education

Pune is a place that has very reputed schools and colleges where one can carry out their studies successfully. Especially, for higher courses, this city offers highly reputed institutes and colleges. From media studies to engineering, you can get lots of options here.

# Job Opportunities

The city offers different offices and field to work for. Professionals from other cities also find jobs as per their quality and academic qualification. It also has an IT park and various other types of job opportunities.

# Varieties of Projects

You will not just find high-end apartments and houses. The city also boasts affordable housing complexes and flats. You can find a suitable place as per your budget. Make sure that you find the best realtor such as the Kolte Patil Life Republic.

Always grab information in detail from the realtor’s website and then decide on the perfect buy.

If you are planning to fund your real estate investment with a home loan, make sure to check and compare different home loan products offered by various lending institutions. For example, with Bajaj Housing Finance Home Loan, you can get many exclusive features such as doorstep services, in-person assistance, flexible repayment options and much more.

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