Technology has simplified the process of applying for a home loan, or any loan for that matter. It can be done in the comfort of sitting at your home in a few steps. However, the real challenge that comes with applying for a home loan online is deciding upon a loan that fits your needs. Today’s highly competitive market is full of options. Various banks and NBFCs constantly try their best to attract more customers through lucrative offers. You could be in a position where you are eyeing a few options but finding it hard to decide which one to pick.
Below is a curated list of things that needs to be taken into consideration to find the best home loan scheme for you.
1) Know the eligibility criteria:
Although almost all the lenders have similar eligibility criteria for the application for a home loan, however, even a slight difference in it may affect your planning. There are chances that you come across the best housing loan as per your needs, but unfortunately, you do not fulfill the eligibility criteria for it. Check the credit score required to get the loan and try to maintain it a few months prior to the application. Also, enquire about the minimum income criteria beforehand and make sure you fall under the same.
2) Make use of the EMI calculator:
Before you go to apply for a home loan, an EMI calculator could be of great use to you. EMI calculator is an online tool that gives you an estimated amount of the EMIs that you will be liable to pay once you take the loan. All these digital calculators only require you to fill in details such as the amount that you want to borrow and the repayment tenure that you would like to pick. Once you enter the details, it shows you the approx EMI that you will be required to pay once you take the loan successfully. Using an EMI calculator can help you stay ahead and plan the loan better. You will also be able to make a clear picture in your head of what your finances will look while paying the installments.
3) Maintaining a good credit score helps:
A good credit score is equivalent to being in the good books of these financial institutions. It becomes extremely easy to get a loan sanctioned if you maintain a good credit score. Your credit score is what helps your lender understand that you are reliable enough to be trusted with a loan. It shows your capability to make repayments on time and not cause any delay in the process. The last thing a lender wants is to end up lending money to someone who does not pay them back on time. Your credit score defines your credibility. The minimum credit score required to apply for a home loan is usually 650. So, if your CIBIL is 650 or higher, you will be able to find the best home loan offers in the market.
4) Go big on the downpayment:
The best home loan scheme also often depends on how well you plan your loan financially. Before making the big decision of taking up a loan, make sure you make a financial plan of how much downpayment you are going to make and how much you can pay as EMIs every month. Paying more for a downpayment will automatically reduce your monthly installments making your home loan plan the best for you. Therefore, it is suggested to save big for some time before taking up a home loan. You will be able to use these savings to make a fair downpayment.
5) Compare the schemes:
Several lenders are present in the market, including banks or financial institutions. Hence, there are a lot of different home purchase loan schemes available too. You can use this to your advantage by listing all that a scheme offers and then comparing it with all the other home loan plans that you are eyeing. Listing out all the pros and cons of a plan will help you get a clear understanding of which plan is best suitable to your needs. Taking a scheme in haste and then finding that there were better alternatives present in the market can be disheartening.
6) Choose the right tenure:
When you apply for a housing loan, make sure that you pick the right tenure. This period is going to affect all the other financial decisions in your life for that time. While it is understandable that you want to free yourself of debt as soon as possible, however, it is advised against picking a tenure so short that it might burden you. On the other hand, picking a tenure that is too long is also not suggested. It is essential for you to take a thoughtful decision. A practical approach and some planning is the right way to go about it.
7) Reading the terms carefully:
The purpose of opting for an instant home loan is to get it asap. The process has been made quick and easy, but there are still a few things that can’t be rushed. Take your time and carefully reach the terms and conditions of the loan before applying for it. Any negligence might cost you later. This is something that cannot be looked over, read thoroughly and understand all the terms before inscribing the documents.
Summary:
The process of applying for a home loan online is easy, but there are a few things that you need to pay attention to get the best scheme. Make sure that you compare different offers that you are eligible for. No matter how attractive the first scheme may appear to be, always conduct thorough research of the market and what all different institutions have to offer. Making use of online tools such as an EMI calculator could be beneficial. Also, don’t forget to negotiate; even if it only means saving a few thousand on processing fees, it’s a win-win situation. Having a proper discussion with your agent might lead to the introduction of some schemes/offers to you.
