$aheba $eraj

Every one has different dream in their life but if you will ask ,most of the people will say they want to buy the house or car ,but now a days purchasing own house is becoming a dream as its price is  ready to touch the sky ,people are working day and night to fulfill their dreams but then too they are not able to …There is another option to fulfill its dream is loan where you have to make partly payment according to your capability .Loan has actually make the life of the people very easy but before taking the loan consumer must keep these things in mind to avoid future problems .

As getting home loans involve lots of paper work and documentation and it can be time consuming and exhausting to hunt for a home and also apply for a home loan

Before you decide to take home loan must read these 7 points in mind:

1)   EMI Affordability –The main factor that influence home loan from borrower point of view is probably the EMI, the monthly outflow that will go towards repaying your loan for the least the next 10-15 years. Do not over stretch yourself. Want to tell you the golden of EMI according to the income ,never exceed  more than 40 -45% of your monthly income ,I m saying this in case of any emergency if you are not able to pay the EMI on time then penalty can misbalance your budget .

2)   Down payment – if you are planning to take home loan then you have to contribute at least 20 -25 % of the property value you choose. No bank will give you 100 % loan ,once you know how much EMI you can afford ,check how much you can contribute from your own pocket .If you need to buy a property worth 25 lac, bank will grant you a loan of rupees 20 lac only ,remaining you have to arrange .

3. Chose your lender: Do a detailed research to find a bank or financing company for home loan. Check with at least 4 to 5 banks and companies to know their terms and conditions of offering a loan, interest rate and tenure. 
While the interest rate is important, you should also look at other aspects such as the customer service, charges for early termination of the loan and more before deciding the financer. 

4. Type of interest rate: There are two types of interest rates on loans - one is fixed rate and other is floating rate. In case of home loans with fixed rate of interest, the amount of EMI does not change during the tenure of repayment while in the latter it changes along with the change in interest rate. It is good to have floating rate if interest rates are expected to fall in near future. 

5. Tenure of loan: The EMI of the home loan is calculated on the basis of amount of loan, interest rate of loan and loan tenure. The amount of EMI is inversely proportionate to loan tenure. If the loan tenure is long then the EMI amount will be low and if the loan tenure is short, the EMI amount will be high. So weigh all your alternatives before finalizing anything. 

6. Know about Extra charges need to be paid: Get complete information about the extra charges that you will have to pay to take a home loan like processing fee, service and administrative fee, etc. These charges are a percentage of your loan amount that is actually sanctioned to you, and not on what you actually take home. Making modification in any of these later may come at a cost. 
So it strictly advisable to get the complete information about these charges before finalizing on the loan agreement. 

7. Read the document of agreement: Read the complete document of loan agreement before signing it. Yes, they can be quite a handful to read in one go, but take your time and read every word carefully to ensure that all the terms and conditions are the same as what you agreed upon.  If you won’t read the document then you have to face problem in the future.

Aug 26 2017 2:20AM