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Home Loan tips : Everything is depending on your credit score when you are going to apply for a home loan or personal loan. The finance company or Banks first check your credit score after that they proceed for a loan sanction, amount of loan, interest rate fixed by a financial company looking to credit score. So credit score taking the main role in any loan at the time of sanction.  

Bhubaneswar: Everybody has a dream to buy a home in their life. To make the dream true is a challenging movement. For those who want to buy a home first time with a home loan at the lowest interest rate, it’s very important to look at these things. It helps all home loan buyers in the present and future. It will help to increase the budget with the profit for taking a home loan. However, before taking a loan you have to understand all the important factors that will help you at the time of deal a home loan.

1. Check your credit score    

The credit score is very important while taking a loan. Whether it is a home loan or persona loan or any other loan. Every lender first checks your credit score. If the credit score is not the good condition they reject the loan application file. Everything is depending upon credit score. The eligibility of loan amount, interest rate, loan tenure depends upon credit score. You can take benefits of a large loan amount at the lowest interest rate an excellent credit score. The best credit is considered above 800 basicpoints. The bank and financial institutions like to provide loans to those who have a good credit score because they are honest and eligible customers. You can increase your credit score by paying your EMI and credit card bill in time. 

When you know your credit score, then make sure all documents like Identity proof ( Adhaar, Voter ID), address proof (electricity bill, postpaid mobile bill, landline bill, internet bill, water bill  ) Form 16 last 2 ears/IT return last 3 years etc. If you have already finalise the property then you have to keep property documents like land registration paper, patta, rent receipt etc. 

2. Take Joint Home Loan       

 

There is a benefit in taking a joint home loan. When co-applicant added with the applicant the sanction of the loan amount increased because lenders while sanctioning a loan they look at all income of both applicant and co-applicant. If the property is in the name of ladies and this lady is an applicant then some banks decrease the rate of interest 0.5% to 1%. Except for these benefits, some states also provide 1% less registration cost if the property owner is a lady.  

3. Take the lowest Interest rate 

The rate of interest varies in different banks. You have to check carefully all lender’s interest rates. You can save a lot of money if the interest rate is less than 10to20 basis points. If the borrower choosing an under-construction project that case the project is tie-up some banks. It is better to take loans from project tie-up banks which will help quick sanction of loam with lowest interset rate. Apart from that borrowers can take other bank loans with the lowest interest.  

4. Read all documents carefully

The bank and the finance company will give you a lot of documents for your signature before sanction and disbursement of the loan amount. It is difficult to read all documents but to read as much as possible. Carefully read those letters written in very small letters this might be written against you. 

5. Pay more down payment   

Usually, borrowers have to pay a 20% down payment of the total property cost. Suppose the property cost is 20 lakh. The borrower has to pay a down payment of 20% i.e 4lakh and the rest 16lakh will pay by the bank or financial company. Always try to pay a down payment of 40 to 50 percent of the property cost. Some bank or financial company provides loan tenure for 30 years. Try to take less tenure which will save money. We have to pay more interest for long-tenure loan repayment.