Buying a home is everybody’s dream. While we make sure of the size, location, security, electricity, water and other amenities, the most important element in home buying is the process of the home loan. In present times, the Home loans for first-time buyers are made easy, and there are advantages too. The Cost planning of the house and the way to finance is very crucial in home buying process. These days, many banks in India offer home loan schemes at an affordable rate of interest. Here are 5 Home Loan Facts you should never ignore especially when you are a first-time buyer.
Comparing the Interest Rates
Sometimes you might find a home loan scheme with the lowest rate of interest. You must make sure about all the terms and conditions associated with the scheme and try to find out the reason behind the lowest interest compared to other home loans. Also, check with the instant comparisons of the interest rates of different banks using some calculating tools that are provided in some of the Online Loan providing websites.
Loan Lender’s History
Before you borrow a home loan from a bank or any other lender, make sure of their history in the home loan department. Loans are a liability and can result in huge financial problems if you borrow money from an unknown or trust less lender. Take the help of the internet get the details of the lender as no one can hide their identity from the internet today. Read their history and check out reviews of the services and products they offer. One best option is to contact mortgage brokers or experts to get the proper information about the lender.
Regarding Down payment
There are certain schemes in the home loan for first-time buyers in which they may attract you with zero down payment methods. Make sure you pay a certain amount of down payment. If you are taking the home loan without paying any down payment, it will be very late for you when you realize the burden of huge interest rates.Remember, the more down payments you pay initially, the lower your EMIs and which eases you the burden and you will be able to repay the amount as soon as possible.
Read Documents Carefully
It is very important for you to read the documents before you take a home loan. Sometimes the terms and conditions are in a tiny font, and very long, you might feel lazy of reading everything, but reading it will save from future shocks. The document will contain all the information and term and conditions related to the loan you plan to apply.
Fees and Charges of home loan for first-time buyers
There are many charges which you might not know such as late payment fee, prepayment fee, processing fee, legal fee, documentation charges, etc. You should be aware of every term before you apply for a home loan. You can also ask your lender to give you a list of all the fees in writing.There are a few but very significant rules you must follow while applying a home loan for first-time buyers. You should also be aware of tax benefits on the home loan (Checklist before buying a home loan) and how can you claim them. Make sure you pay the EMI on time every month after you get your home loan.
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