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@homeloansindia
When you apply for home loan online you will not only save a lot of your valuable time and efforts but efficiently compare the interest rates, processing fee, and other information parameters. This will help you crack the best home loan deal online. All you need is a sturdy internet connection and smartphone, laptops or computer and you can make an application online right from the cozy corners of your rental homes or offices.
A few reasons why you should apply for home loan online.
Life is full of ups and downs and thus, every individual saves a sum of money that he could make use of in his or her times of need. This need could be to take care of any future unprecedented financial setback or to make a huge investment. Purchasing a house is considered as one of the biggest financial investment that a person can make. However, people often struggle, even after saving every dime and penny to raise the required funds to purchase a good property. However, at such times, rather than giving up on their dreams, people can now apply for home loan online.
There are a number of banks and NBFCs (non-banking financial companies) that offer online home loans at way lower interest rates than the ones given out by loan sharks and traditional financiers. Also, there is even a discount of 0.05% on interest rates given out for women borrowers and co-applicants.
There are numerous reasons why you should apply for a home loan online in India, and a few of those reasons are here as follows:
You can make use of a home loan amount to purchase a new property or refurbish any of your existing ones. You can even make use of financial assistance from a housing loan for home extension purposes. A home loan in India is given by financial institutions for both residents as well as NRIs (non-Indian residents).
The biggest reason why you should apply for home loan online is that you save yourself from the hassles of visiting a bank or an NBFC (non-banking financial company) in person and wasting countless hours. All you need to obtain an online loan is have a sturdy internet connection and an appropriate electronic device. This device can be any of your computers, laptops, smartphones, etc. If you have these things then you can obtain a home from the comfort of your home or office.
The repayment of a home loan in India is done in the flexible form of EMIs (equated monthly installments); for you to plan out your future and current repayments easily. You can even make use of an EMI calculator for free by simply opting to apply for home loan online. This calculator will help you to calculate your EMIs on the basis of the principal borrowed amount, interest rates charged by the financial institutions and the repayment tenure chosen by you.
A home loan generally has longer repayment tenure than any other form of a loan. The maximum tenure for the repayment of a home loan is around 30 years. Therefore, you don’t have to put a strain on your pocket in order to make any repayments to the banks and NBFCs (non-banking financial companies).
However, there are set eligibility criteria given out by the financial institutions that you need to fulfill before you apply for home loan online. These eligibility criteria are as follows:
You need to have a stable source of income.
Make sure that you have a good credit score and history.
The financial institutions also scrutinize your previous and current debts; if any.
Few tips to consider before you apply for home loan online.
With the advancements in the internet technology, nearly every sector have upgraded them and starting offering their products & services online. The loan lending sector is also not leaving any stone unturned to acquire potential customer or retain the existing ones.
Be it a car loan, personal loan or home loan there are several e-lending firms that offer loans online. You can apply for home loan online with some of the reputed and leading finance firms with just a few clicks on your smartphones, laptops, or computers.
Whether you're salaried or self-employed you can avail home loan with attractive interest rates from these lenders. You can avail housing finance to buy a new home or resale property, row houses, flats, plots, home renovation or extension loans, rural home financing, or top up loans. Quick loan processing and affordable monthly installments make home loans online the perfect choice for new customers or experienced home buyers. They come up with expert counseling that will help you in property identification to make your home purchasing rather convenient and hassle-free.
Home Loans online are currently very popular due to the fact that it saves a lot of time and efforts for you. When you visit the aggregator sites online you can get detailed information about the interest rates, loan disbursal value, loan tenure, EMI, processing fee, etc. right from the cozy corners of your rental home or offices. You can then choose a particular lender and apply for home loan online. These loans are popular for quick approvals and instant loan disbursal to fulfill your dream of buying a home as early as possible.
Few tips before you gear up to apply for home loan online:
Shop Around: There are several lenders available online for housing financing. In your quest to borrow money don't just apply with the first lender. Instead, it’s better to shop around. Look for the interest rates, processing fee, terms and conditions, additional charges, across different lenders and pick the best loan lender.
Know your loan eligibility
Every lender has its own eligibility criteria on the basis of which they might approve or reject the loan. While the criteria might vary between lenders, it’s important you know it correctly before apply for home loan online. Some eligible factors are income source, age, number of dependents, job or business stability, credit score, number of existing loans & its EMI, and additional income source like spouse/parent's income.
Check your Credit Score
Your credit score plays an important role while deciding the loan value and the interest rates. Every lender will scan through the credit score before giving a go-ahead to your application. It is recommended that your score should be around 750+ to negotiate with the lenders for a better interest rate. You can get a credit report free of costs at any of the aggregator sites online.
Opt for reputable lenders
It is recommended that you have a thorough check on the lender reputation when you apply for home loan online. Initially, any lender will lure you with attractive deals but later it seems you're duped. So, check the background of the firm, its loan approval process, and customer service approach, visit aggregator sites to read reviews about a particular firm or bank. See how efficient and quick they are in processing your loan application with no hassles.
Apply for HDFC Home Loan will get you into the doors of your dream home faster with up to 90% funding, easy documentation, instant approvals and doorstep assistance. Apply now!.
Looking to fund your dream home? Opt for home loans.
Home Loans are one of the best ways to finance your dream abode in this time of high inflation rate. Not everyone can deal in full cash while buying their house especially the salaried individuals from the middle and upper-middle-class segment. Thus, the loan is like a boon to achieve their milestone in life. With home loans, you can avail a property or dream house along with good tax benefits with multiple provisions or section under Income Tax Act, 1961 which is designed to give exemptions to borrow for home loans.
With the internet, the process of applying for home loans has been simplified to a great extent. Right from comparing the interest rates, to fill-up up forms, submission to approval and disbursal everything is done online. Thus, e-home loans or home loan online are convenient, easy and hassle-free. Online home loans don't require several visits to finance companies or banks to form fill-ups, submission to inquire about loan approvals, etc. The home loan application can be done right from the convenience of your rental home or offices, thereby giving borrowers a simple and hassle-free experience. It is been a boon for the young generation who are always on their toes and need quick and easy solutions right from availing finance to buying apparels, ordering equity stocks to favorite pizza online.
Opting for online home loans will give you a lot of advantages. You can compare multiple home loan offers of different providers and compare interest rates in real time. It can be done 24 X 7 as per your needs and convenience. The interest rates, principal amount and EMIs will different based on home loan providers and financial institutions. Therefore, it’s better to check and make an informed step to ensure you crack the best deal online.
Some of the other benefits of applying for e-home loans over traditional financing would be:
Traditional home loans take a lot of time and energy consumption. The process is lengthy and takes several months to know the loan status and then final disbursements. However, e-home loans are instant and convenient. You only need to spend a couple of minutes to fill up forms online and everything from approval the fund transfer happens online. Whenever you're in doubt about the interest rates, principal amount, EMIs you can afford using an online email calculator on their websites.
In traditional home loans, you have to manually visit the offices, submit a number of documents to prove your loan eligibility, etc. With e-home loans, you have calculators on the lender sites so that you can check the eligibility all by yourselves. It’s simple, quick and absolutely free of cost. Even the processing of documents online is speeder compared to traditional loans. Once upload a scanned copy lender gives a go-ahead for the suitable loan amount and interest rates to offer you.
If you have proper documentation in place, good and stable income with exceptionally good credit score, your loan gets sanctioned in a couple of days and disbursed to your bank account online directly this is way faster than the traditional way. Over there they will hand you over the cheque which you need to deposit to a bank account and it will take another week for the amount to be credited to your account. The system is designed as such to ensure that loans are sanctioned or rejected instantly, without trying to keep a backlog and wasting the time of vendor as well the borrowers.
HDFC Home Loans get you into the doors of your dream home faster with up to 90% funding, easy documentation, instant approvals & doorstep assistance. Apply now!. For more details visit https://www.hdfc.com/home-loans
Four ways to crack the best home loan deal.
Home Loans are easily accessible to millions of India who seek a dream of buying their own house someday. There are leading banks and private finance companies who offer loan at attractive interest rates. However, the interest rate is supposed to be the crux of the home loan product and low-interest rate will definitely save money in the long run. Things like the type of interest rate such as fixed rate and floating interest rate, prepayment charges, a concession for joint or women applicants, senior citizens, will help people to choose the home loan best suited for you. Although, taking a home loan is quite simple, however, it’s important you do enough research and choose the one which proves lighter in your wallets. Every year, lenders launch new and customized loan schemes which suit the economic trend of the nation.
So, here are four ways in which you can identify a good home loan deal to finance your dreams:
Check the money offered to you:
The percentage of money lenders offer counts a lot while choosing the loan. So, if one lender is offering 80% of the loan amount to buy the home and the other is offering 85% it makes sense to go with the latter one. Although, it helps you when you don’t have enough sums to make the down payments, remember your EMI will increase in the percentage amount.
Check the interest rates and prepayment charges
A lot of lenders will lure will low interest rate deals and later incur unnecessary charges just to recover the costs, thereby making you feel duped. Therefore, it would be better to confirm with the interest rates and lock your rates till the end, prepayment charges, processing fee and then close the deal. According to the RBI, lenders can't incur prepayment charges for home loan borrowers for floating interest rates. Keep all these things in mind and then sign on the dotted lines.
Loan processing time
The process of loan application is a lengthy procedure that requires the submission of any property and income-related documents. So check the turnaround time and apply with the one which has simple, transparent process that saves on time with better schemes. The research will help you know which lender will help you avail the best home loan deals and takes the least time. Applying for a loan online will reduce your time and save money, energy for several rounds to the lenders for documentation. Apply for home loans online, now!
Check for concessions:
Women are considered to be the backbone of our society and helping hand at every walk of life. Lenders offer special concession to women applicants as an individual or joint applicant. Even a 0.5% concession on the interest rate can help you save thousands of rupees in the long run.
Choosing the best home loan deal helps you save a lot of money while buying your dream home. Online home deals are better and save your time and energy, so compare home loans and apply online, now!
What is the right time to avail home loans!
Purchasing your dream home gives ultimate joy and happiness. It gives secure shelters wherein you don't have to waste lakhs of rupees on rent and keep on migrate for your living. Many people fulfill their dream of buying a home by taking a house loan. Home Loans are the stepping stones to buy your dream home. Other than low-interest rates several things have to be taken care off when taking home loans such as processing fee, penalty charges, pre or post-closure charge, type of interest rates, repayment amount, etc. It's obvious we all look for lower interest rates as it proves lighter on our wallet. The competition amongst the market players is getting stiff day-by-day and it's the consumer who is getting the benefit in the form of low-interest rates.
Let's go through the things you need to take a note of while availing home loans:
Higher Eligibility
A drop in base points of home loan interest rates would mean there is better loan eligibility for housing loan borrowers. For example, A person earning 10,000 is eligible for a loan of Rs 6 lakh then in the revised home loan interest rate case it would mean the loan you get qualified for would be around 6.2 lakhs. Thus, you get higher loan amount eligibility when there is a drop in base points and don’t even have to give up on your home at favorite location and amenities. Something that you always wanted to but you couldn’t afford because of financial strain.
Save More
Buying home needs a hefty amount of finance. Therefore, it’s better to look for means wherever you can cut down the cost to own a home. It starts with hunting for a home in place or locality which has cheaper home rates, cut the cost of interiors, take home with amenities’ nearby like grocery shop, malls, schools, station, etc. With a drastic drop in housing loan interest rates, you now have to ease alternatives to save more money. Thus, when you start saving more when calculated over the complete home loan period of 20-25 years it results in a substantial sum.
Home loan interest rates depend on many factors like government policies, property value, BPLR - benchmark prime lending rates, so you cannot guarantee that existing rates home loan companies that offer today will be stable tomorrow or not. Thus, as the old age saying goes "You should strike the iron when it’s hot” it is best to implement it to decide your housing finance. Although it's not wise to rush every minute or second, however, it would be better to stay vigilant and lock your deal with good rates whenever companies are willing to offer customers.
Experts say lenders are flexible in keeping a lower monthly installment structure in the initial phase. When you have sufficient liquidity you can opt for more aggressive monthly installment payments. Online websites these days help you figure out the right home loan amount and interest rates you wish to afford with the help of home loan EMI calculator. You can key in details based on your income source, risk appetite, and future financial goals. If you ask when is the right time to take home loans? Well, it’s never too early or late! Start searching for the best home loan deals, negotiate for interest rates with the lenders in the best possible way, talk to your financial expert and lock a suitable home loan deal, now!
4 things you should do before looking for home loans.
Home Loans are a blessing for anyone with homeownership on their mind. These financial aids help you purchase your dream home even if you do not have all the funds upfront. However, going in for a home loan is a huge financial decision and requires an umpteen amount of planning, research, and preparation. There are a number of things you need to make sure of before you apply for a loan, without which, your experience of a housing loan can become a hassled one. To keep this from happening to you and to help ensure you make a well-informed decision, this article will highlight 4 things you should before you start looking for financial offerings. 1. Save for a good down payment. If you have time on your hands, it makes sense to beef-up your down payment amount. This will allow you to borrow less and also help you pay less interest. This is because the interest you pay is calculated based on the loan amount you borrow. Therefore, a lower loan amount will result in lower interest payments as well. 2. Work on your credit score. Many things about home loans depend heavily on your credit score; the interest rate applicable and the loan amount you are provided included. Better credit scores are sure to get your better interest rates and they’ll for sure help you get higher loan amounts. So, if you’re going to set aside time to save for a larger down payment, it’s worth it to work on your credit score too! Make it a point to pay any existing loan EMIs on time, the same goes for your credit card payments. Whilst on the topic of credit cards, staying within your credit limit & sticking to your oldest card will also help you increase your credit score. Though a good score is around 750, the closer you are to 900, the better! 3. Use calculators. Before you start looking for home loans and go into debt, it’s vital that you have all the calculation in place to help you get out of debt. That’s why it’s so important to use one of the many online home calculators. One of them is the EMI calculator that helps you with the entire break-up of your repayment schedule, right from the first EMI amount to the last. Knowing this can help you create full-proof repayment plans and budgets. Another vital tool is the eligibility calculator. It will tell you how much of a loan amount the bank is most likely to provide you keeping in mind your monthly income and outgo.
4. Life insurance.
As long as you keep paying the EMIs, the house you live in is safe and after the loan is complete the home will complete yours. However, if something were to happen to you, your loved ones would have to shoulder the cost of the home loan. In such cases, a life insurance plan will provide you complete peace of mind and help your loved ones cover the cost of the loan with ease. Doing these 4 things before applying for home loans is vital. They will ensure your borrowing and repaying experience is a smooth one. Good luck and all the best.
Insurance on home loans: 4 things you need to know.
Home Loans are a significant form of debt to handle. They involve large amounts of money and require you to devote sizeable parts of your monthly income towards repayments for as many as thirty years; that’s 812 months. However, the fact that your lender has provided you the loan indicates that you currently able to repay the amount; a process that will only get easier as you benefit from appraisals, bonuses & other windfall gains during the course of your working life. In other words, as long as you’re around, everything will be just fine. You’ll pay the EMIs, and eventually repay the entire debt too. However, life is very uncertain and if something unfortunate was to happen to you, the responsibility of repaying the home loan falls on the shoulders of your family members; family members who might not be financially capable of handling this debt. This is where an insurance policy can come in and provide you peace of mind, even from such uncertainties. They ensure your loved ones do not have to pay the EMIs or see the house go up for auction. However, before you go out into the market and look for an insurance policy, keep these 4 things in mind. 1. The insurance that comes with home loans. Most lenders will offer an insurance policy with their home loans. Whether you opt for this insurance depends on a number of things. Some lenders have tie-ups with an insurance company and provide one of their plans as the default and only option. Some have the same setup but they allow you to choose a policy besides the one they are offering, so you are free to go with the one you like. It is better you opt for a lender that doesn’t force anything on you, including the insurance policy.
2. Look out for single premium payments. These policies function normally; the only thing is that you pay one single premium upfront instead if small amounts over time. This adds to the other up-front costs such as the down payment, the processing fee, stamp duty, etc. 3. Payment methods There are many ways the payments can be made. Firstly, you might be able to pay for insurance yourself, either upfront in a single premium form or in monthly, quarterly, half yearly or yearly premiums. On the other hand, some lenders insist on making the payment in your behalf and add the total cost to the loan value. This will lead to higher EMI amounts. If you pay the premium yourself, you can claim the amount as deductions up to Rs. 1, 50,000 under section 80C of the Income Tax Act. 4. Coverage. The cover offered by some policies gradually comes down as the outstanding amount decreases. For example, a plan with a 25 lakh cover could reduce to as much 13.5 lakh after the tenure of the loan. The drawback with this is that if you were to extend your tenure the outstanding amount would increase. In which case, your family members would have to arrange the difference. Keep these 4 things in mind when looking for insurance on home loans.
Good luck and all the best!
Modern-day benefits of applying for a home loan online.
In today's modern time, technology provides a wide online platform for buyers and lenders for daily trade and business. The information flows from one party to another. And real estate sector is not left out from being revolutionized due to the digital wing. Gone are the days, when one had to fill up forms, do attestation, file the documents and wait hours and hours standing in the long queues, and then months to know the status of their home loans. Now sitting in the comfort of your rental home or offices with few clicks of the mouse, you can apply for a housing loan. Internet facility is kind of a boon for middle and upper-middle-class smart individual who don't believe in wasting time and energy yet fulfill their dream goals with ease.
Compared to a decade ago, getting home loans today is rather easier for us because of the website information of some of the most reputed players of the markets, aggregate sites and speedy app based applications. Thus, gathering information, comparing quotes, filling forms, review forms and documents, and knowing the status of your loan is now quick, easy and with few clicks away on your computers, laptops, and smartphones.
Here are some benefits of applying for home loans online:
Save time
A couple of years ago, home loan application had a lot of manual procedures involved that was time-consuming and tedious. However, with online application procedure, both borrowers and lenders can save time, efforts and inventory set up. Thus, technology now reduces human error and maintains high accuracy!
App Based Model
With the invention of smartphones, technology gets an inch closer to your service. The time is changing for home loan borrowers. Right from comparing quotes to applying for home loans, checking your monthly EMIs to making payments of your home loan installments, everything can be done through smartphones and while in mobility. You don't even have to sit at your home on the computers to do the task. You can maintain the amortization schedule, track payment history using smart devices.
Quick quotes
Compare to olden days tedious process, getting loan sanction is rather quick and within few minutes through online application way. Low-income group people who feel hesitant to visit banks or non-banking finance companies can actually visit the online aggregators sites, make comparison between different lenders on the website, fill up a few questionnaires, and within few minutes they will be given a complete break up of principal amount qualified for, interest rate affordable and processing fee towards your home loans.
Loan Eligibility
Everyone is aware the maths of home loans involves a lot of calculations and complexities. Slight misjudgments can cost you a bomb, so you have to be very careful on it. Manual calculations carry this fear and you will have to shell more out of your pockets. Thanks to technology that has gifted us home loan eligibility calculators - An easy, accurate and hassle-free option for calculating your monthly installments, interest applicable and principal amount you will get to buy your dream home. Some calculators give a glance at EMI graphs, and details about processing fees, so based on the needs and requirements you can adjust your home loan - tenure, principal amount, eligibility and more.
A lot of information is available online to make your life easier on housing loan. To strike out for the best deal it would be wise to do in-depth research. Visit online and apply for home loans to fulfill your dream of owning your house, now!
4 things to keep mind when in the market for home loans.
Home Loans are one of the biggest blessings for people with homeownership plans on their mind. They provide a majority chunk of the funds required & help you enjoy complete peace of mind from property prices today! They also help you buy into one of the best investment opportunities in India, property and help you save a considerable amount of money through tax benefits under section 80C and 24 of the Indian Income Tax Act. However, before you find a financial offering and sign your name across the dotted line, this article will highlight 4 things you need to keep in mind to ensure you are not blinded sided by any unforeseen complication later on. 1. The loan offering provided. The first thing you want to keep in mind is the financial product on offer. You need to bear in mind the amount of funding being provided, the interest rates applicable and the length of the tenure on offer. Most lenders will provide you up to 90% of the property’s value as the amount of funding at interest rates ranging between 8.35% & 9.65% per annum with tenures as long as 30 years. 2. Check the down payment you need to arrange. As mentioned earlier, the lender will mostly only provide a major chunk of the funds required and you will have to arrange the rest. So check with the lender how much they are willing to provide for the property of interest and how much of a down payment you will need to provide. If possible, provide a higher down payment then required as this will reduce the loan amount you have to borrow and cut down the amount upon which the interest on your loan is calculated. 3. The processing fee of home loans. Besides for the interest rate, you’ll also want to pay close attention to the processing fee being levied on your application. You need to pay this amount for applying for the loan and it is not refundable, even if the application is rejected. Some lenders charge as much as 2% of the loan amount which can turn out be a huge amount, another charge 1% of the same which is still a sizeable amount of money while others offer to waive this cost off if they see you as a promising borrower.
4. Keep in mind your home loan eligibility. Everyone has a different eligibility level when it comes to home loans. What the lender offers you might much higher or lower than what it offers to the next applicant. Your eligibility depends on a number of factors such as your credit score, your incomes, your monthly obligations, your financial capacity, etc.
Knowing your eligibility helps you apply for an apt loan amount and ensures your application isn’t rejected because you’ve applied for a loan amount that’s above your reach. It will also ensure you do not lose your processing fee. To find out your loan legibility, you can use one of the many home loan eligibility calculators that are available on most lenders’ websites and on aggregator pages as well. Knowing these 4 things will help you a good experience with home loans and ensure you get a financial offering that suits all your needs and requirements. We hope this article has further your knowledge and will help you make an informed decision.
Good luck and all the best!
Understanding the jargons of your home loans.
The decision to buy your property is a big and an important one. When you apply for housing finance, you're getting a financial commitment for a longer term. You might do the best to prepare with paperwork, funds to make the down payments, your lenders will do a rigorous credit assessment to ensure that lending loan will entail for minimum risk to them.
There is no specific formula to monitor or analyze housing finance. Everyone has to go through financial requirements in life and therefore their goals are different. Some might reduce monthly installment due to financial crunch or some may increase it to clear off the home loans as quickly as possible. While availing your best home loan deals, the first thing would be estimating your personal wealth and home loan eligibility.
Once you come to know the principal amount that you may qualify for, you can check the flexible-repayment options as well for clearing off the debt. Home loans could be taken with interest rates as low as 9 to 10% and come under variants like fixed rates, floating rates, or partial fixed-floating basis.
Fixed interest rates are constant throughout the loan term and floating rates are linked to market conditions. They may change periodically and they're linked to the base rates, inflation, other economic parameters. Each bank or finance company will have their own methodology to fix this base interest rate. The rates have to be declared by the lender each quarter. Some private lenders offer best home loans in the form of adjustable rate of interest rates, tru-fixed loan for 2-3 years or 10 years which is constant for given tenure and then floating for the rest of the time.
It's better to keep an eye on the various changes in interest rates during the loan tenure. In case you find the interest rates are costing more in your pockets you can consider changing to another lender. Also, remember that every time there is an interest hike, tenure of the home loan will get prolonged. If you have initially taken a loan for 20 years the rate increase might stretch to around 30 years. Choosing right repayment strategy will also help you clear off the loan in much more planned and efficient manner. Markets have the various forms of repayment strategies like step-up repayment facility, flexible loan installment plans, trance-based, accelerated repayment scheme or telescopic repayment options.
A couple of years ago, availing home loans would be an arduous task with a manual application, documents attestation, and visiting branch for submission and finally waiting for the approvals. However, due to the online home loan application process, things happen with a spur of the moment. Right from visiting the website for the comparison, downloading the form to uploading a scanned copy of documents, everything is at the touch of the button on smartphones, tablets or computers.
Prior to your decision of buying a home individual seeking to take loan should be well aware of the situation such as their income source, risk appetite, affordable interest rate, EMI you can pay, etc. The online home loan is the latest buzz amongst the educated segment who believes in doing smarter things with least amount of time. It has immensely helped people seeking home loans to fulfill their dreams.
Parameters to consider while applying for home loans.
We are sure you’ll agree that buying your own house is one of the greatest achievements in life. Thanks to the continuous efforts of government and private finance companies who have reduced the rate of interest as low as 8.50 to 9.50% to avail a home loan and has fulfilled the dreams of millions across the nation.
Under the PMAY-Credit linked subsidy schemes the rates have further dropped down to around 6.50% to 7% which makes home loans a viable product for many middle-class applicants in the society.
However, when it comes to sanctioning the home loans banks and non-banking finance companies (NBFCs) are quite strict towards having a background verification of borrowers. They give check various qualify parameters such as income source, age, property location, job or business stability, nature of work, credit history, etc. and then suggest a suitable loan amount.
Of these, the most helpful and promising one is the joint income source. Many times an individual might be looking for higher loan amount but due to a low-income source, he or she is unable to get higher loan limits. At such point of time, adding an income from your parents or spouse can help you get higher eligibility and fulfill your dream.
Joint income source assures a stable source of money towards your monthly installments for the bankers and non-banking finance companies. With a joint income source and good credit history you can negotiate for low-interest rates, and waiver of processing fees.
Apart from joint income source few other parameters that need to be addressed carefully before applying for home loans are as follows:
Existing Debt: Any existing debt you hold will bound to affect your credit score. It means you’ll get low loan amount against the required financial needs. Banks and firms consider your debt to income ratio when you apply for a housing loan so you need to make sure you clear off as many debts as possible in order to favor your housing loan lenders.
Savings: Ideally, the lender agrees to offer finance up to 80% of the agreement value of the home. Every bank or non-banking finance company will have its own eligibility criteria under which you need to show the margin money of 10-15% handy before you apply for home loans.
So, it is advisable to save at least 20% of the down payment and have little extra to cover few monthly installment on your loan. Problems like a recession, health issues or other perils might grapple you anytime with no source of income for a while so it's better to be prepared to cover your expenses for a couple of months. This shows your well preparedness towards your housing finance.
Employment history: When a person is working in particular firm or job for more than 2 years it shows better stability for your income source and lenders will be willing to have quick loan sanction.
In case you’re applying for a loan then don’t consider to quite, change your job. Instead, hold on your horses until your loan gets approved. Alternatively, if it’s a business then they will check your IT- papers and other required documents to prove its stability.
In India, there are various types of customized home loans to choose from. Always choosing the first one is not an intelligent option. Instead, there are online sites that will help you compare the interest rates, pre & post penalty charges, EMI delay charges, interest rates and flexible repayment options. So, visit online and compare your loan. Also, you need to know how much you can afford it.
It would be best, to check online through housing loan eligibility calculators what amount you get pre-qualified for a loan. It helps you understand how much you can afford a home and about the mortgage payments would come up to. With internet-based services, time is spinning across compared to an age-old process of visiting banks, filling up forms, getting copies attested and submitting them. With online service, you can fill the relevant form, attach a scanned copy of relevant documents and submit the same online for approvals.
Expense-to-income Ratio: The expenses of the borrower should not shoot up higher than 50% of his or her income. Else it’s become difficult to avail a loan. Lender's assessed’ borrower’s repayment capacity with factors like income, asset, liabilities and job stability.
Credit Score: It plays a crucial rule in measuring the borrower’s creditworthiness. It builds a trust factor in lenders that you’re a regular payer and pays all your dues’ on time. A lending firm may not consider an applicant whose credit score is below 750.
It’s simple the closer you get to the loan eligibility parameters, better are the chances of availing higher loan limits. Visit online, compare and apply for home loans,
Affordable home loans is the jingle now.
When you type home loans rates in the search engine, it’s apparent that you are planning to buy a home you were waiting for so long. But stuck with the dilemma of what type to choose and when to choose. Since few years we have seen that the interest rates have come down drastically making home loans affordable for many of us. But, being budget loving people we are still sitting in the fence for the rates to come down more, right? It’s an advice for you, us & all who are willing to join the bandwagon of home loans, that if there is steady flow of income to absorb the EMIs then it’s the right time. Because, though the rates are the lowest in home loan history, but the property prices are also making history in touching the sky.
The home loans rates that you typed in your Google search bar is responsible for the home loans being affordable. Earlier people used to pay 15-18% of home loan interest rates, which made the EMIs burdensome and kept most of the people away from buying the property. Nowadays with developing market conditions and flexible government policies the rates are coming down to 8.35-9.50%, what a wonderful scenario for the common men, isn’t it? Now you, we and all who have a stable job to pay the EMIs regularly, a good credit score and funds to make the down-payment & processing & other miscellaneous fees can create our own place. Many financers have walked extra miles to celebrate & motivate women empowerment has cut down the home loans rates by .05%. They made the loan process easier for the female borrowers owing to their credibility and responsible nature.
The home loan interest rate depends on factors like the base rate, the credit profile & loan amount. The base rate is determined by the financial institute and the government policies which fluctuate in case of the adjustable/floating rate of interest. The other part is determined by the credit score the borrower has and the loan amount he wants.
The credits score is a crucial factor that can make you get a loan, or can get your application cancelled. If the credit score is good and near to 900 then be sure that your credibility would be appreciated and your demands would be entertained by the financer as long as it is within the limits of RBI guidelines. You can get the lowest interest rate offered by the financer; you can get the maximum amount of the loan money for the selected property depending on the loan slab of the organization.
When you are applying for the home loan you get to choose from the fixed, adjustable and semi-fixed rate of interest. In case of fixed rate of interest, you have to pay a fixed rate of interest all through your loan term. It is bit higher than the adjustable rate of interest but give you a stable budget.
In case of floating/adjustable rate of interest your rates vary depending on the market condition & government policies. It is generally lower than the fixed rate and saves you a lot in interest cost.
The third type is the combination of fixed & floating, it is termed as semi-fixed or truly fixed rate. For a committed period of time the rate is fixed, after that the rate converts to floating rate.
Hope this article served your purpose for typing home loans rates to choose your home loan and interest rate. For tip, choose a financer that is RBI authorized to enjoy maximum benefit without any hassle.
Advantages of switching Home Loans after Interest Rate Cut
The New Year brought in a reason to rejoice for house loan borrowers. The home loan interest rate saw a further dip and here’s what’s important to note.
How do the old borrowers benefit?
The old borrowers who have been servicing their EMIs based on the erstwhile base rate system of lending are the main beneficiaries of this interest rate cut. They now have a stronger reason to switch to the MCLR – based lending, even though the base rate hasn’t come down as much but the difference between base rate at which old borrowers are servicing their loan and the current MCLR is widening.
Why should you switch?
The benefits of RBI rate cuts have been given rather sluggishly to borrowers, which is the main reason to switch from base rate to MCLR.
What to watch out for?
The home loans interest rate at present seems to be in place for a certain period of time. The only disadvantage could be the interest rate cycle turning. There is always a risk of an upward movement of interest rates before reaching the reset period.
What are the options for base rate borrowers?
The tenure is automatically reduced when the interest on your loan goes down, thereby, transferring the benefit of lower rate to the customers.
The base rate borrowers now have two options – switch to MCLR based lending with the lender or else, transfer. One may also continue the loan on base rate, especially if the loan term is nearing the end.
The switch to MCLR by base rate borrowers is allowed by RBI. The existing loans can run till maturity or borrowers can switch to MCLR on mutually agreed terms.
Switching in the lending institution
In case the difference between what you are paying and what is being offered now as MCLR is significant, it makes sense to switch. Also, in cases where the home loan tenure is still away from closure, it’s sensible to make a home loans balance transfer.
Switching to another lender
If you are being offered a high housing loan interest rate (MCLR plus spread) then look for refinancing. In such a case, get the loans refinanced from a lender offering a lower interest rate and make a home loan transfer. Also Read: Your Checklist for Home Loan Transfer
Switching to MCLR in itself should help you save a substantial amount. In addition to switching the loan from base rate-linked to MCLR and thereby saving interest, prepare a systematic partial prepayment plan to further reduce the interest burden. Therefore, it is advisable to analyse and switch your existing home loans provider whenever there is a home loan interest rate cut.
{Source: www.indiabullshomeloans.com/blog/advantages-of-switching-home-loans-after-interest-rate-cut/}
Suit yourself: How to choose which home loans suit you best?
While home loans are easily available, it is essential to avail of the one with the lowest interest rate, thereby saving money. Important criteria such as loan percentage, lowest fixed and floating interest rates, availability of prepayment option, special concession for women and senior citizen etc, will help people to choose the home loan best suited for them.
Taking a home loan in present day has become very simple due to more banks and private lenders offering flexible interest rates and various budget options. In this wide market, it is important for one to do their research and choose the one which allows them to save the most money. Every year, banks launch new home loan schemes and introduce loan options which suit the economic trend of the country. Public sector banks will not raise the home loan interest rate as they are pressurized by the finance ministry to protect the home loans borrowers.
Four ways in which you can identify a good home loan scheme are:
1. Check the percentage of loan offered: One can decide which is the best home loan based on the percentage of the home loans offered. If one bank is offering 80% of the amount required to buy the house and another is offering 85%, it makes sense to choose the latter. This is helpful only if you are unable to afford large sums for down payment but subsequently, your EMI will increase in the percentage amount offered.
2. Analyze the interest rates and prepayment charges: The smartest way to save on home loans is to choose one based on the rate of interest and free processing offered. Checking for the EMI, prepayment charges and processing fee and looking at comparative rates are good ways to sift through to the best home loan offers. According to the RBI, banks are not allowed to collect a prepayment charge from home loans borrowers for floating interest rates. It is also easy to change the loan from one bank to another along with the transfer of balance.
3. Consider loan process and time involved: The process of applying for a loan is a lengthy procedure and requires the submission of many property and income related documents. The time taken for the application to be considered and the loan to be disbursed differs from bank to bank, but this time should also be taken into account when considering a loan. Apply to a bank which has a simple process and saves time with better schemes. While there are agents who can guide you through this process, it is not possible to gauge their credibility. Researching can help you find the best home loan schemes which take the least amount of time. Applying for a loan online would also reduce the amount of time it takes for the loan to be approved.
4. Special concession schemes: Some banks would offer special concessions to senior citizens and women which would save them a considerable amount on the interest rate. LIC housing finance offers a 10% special interest rate for female borrowers in comparison to the normal 12.25% offered for others. People could also look into different kinds of loans such as hybrid loans, joint loans, etc.
Choosing the best home loans scheme would mean that you would save money in the long run. When the plan is suitable to your financial conditions, it also reduces the stress induced by taking a home loan.
{Source: https://www.indiabullshomeloans.com/blog/suit-yourself-how-to-choose-which-home-loans-suit-you-best/}