How to get the best deal in the Home Loan?

Housing loans

Taking the home loan can be the biggest financial decision of life, so clear understanding of terms and conditions and as well as comparison of various home loan offers is very essential because it help to choose the best offer among different loan providers. Some factors such as; rate of interest, processing fee, faster process and few other factors one should consider before deciding on a financial institution or a bank to avail the loan from. It is recommended to do comparative analysis on every factor before selecting a particular lender or financial institution or bank. Some factors are below mentioned;

Loan amount:
All the banks or lender have different eligibility criteria for assigning the loan it can be in terms of your income or percentage funding to value of the property. In simple words if you are planning to take 40 to 50 per cent of the property value and your monthly income is far more than the required EMI, so don’t worry you can get the loan easily. But in case if you need 60 to 80 per cent of the total property cost and your income is not so more, so banks can check with your financial status. In general banks can lend up to 80 per cent of the property cost.
Compare Interest rates:
Before taking the interest rate it is recommended to compare the interest rates and processing fee of different banks or financial institutions. As an intelligent person, one should choose the bank or lender which is offering the lowest rate of interest with the track record of offering lower interest rates and processing fee in last 10-15 years.
Property listing:
As a prospective buyer, an individual should draw up a list of banks, which is approved or shortlisted by property developer. Chances of getting the loan from those banks which approve the property are more than the banks that doesn’t approved the property. Getting this list is not big task because an individual can find this list on the website of builder.
Processing fee & other charges:
This is one time fee, but still the matter of concern, before finalizing the decision it is recommended to compare the loan processing and other legal fees while comparing the interest rates. The banks, who give lowest rates, can be considered as the ideal bank for loan.
Procedure and approval time:
In India, most of the banks take 3 to 8 days for the loan approval and other formalities, customers should ask the bank about their procedure and approval time and after that you should proceed with bank according to your comfort. The banks who ask you to come to branch to complete the process should be avoided because as professional it s not good thought to take 3 to 4 days holiday for loan procedure.
Flexibility of EMI and payment dates:
Some banks have fixed dates for the payment of FMI and as customer if you are comfortable with that date, so you can go ahead. Make sure your bank gives you flexibility for choosing the right EMI date.
Real the legal documents and final agreement:
Always, real the legal documents and final agreement fully, do not make your decision in quick time, take time and decide the right thing. Be sure that there are no more hidden charges or clauses.
Before going with any particular bank compare the bank and lenders rate and other conditions on above mentioned points and at the end you will be end with right deal. It is recommended to consult with at-lest four to five banks before closing the deal. Buying a home or closing the home deal may not be big deal, but the whole process is a very big deal.