Housing.com has offered its home loan section to help end users purchase the properties they find by the help of the property portal. However it is up to the end user to manage the loan efficiently so that there is no financial pressure during the tenure of the loan. Needless to say, home purchase is one of the biggest expenditures for a common individual. Therefore the need for a home loan becomes an imperative in most of the cases where a property is to be purchased. However owing to the size of the finances involved, it is not easy to manage a home loan especially if one defaults on payments.
Therefore adequate planning is required when opting for a home loan. The following are the four tips to help secure a good home loan as well as service one adequately.
- Pay as much as Possible from One’s Own Pocket
Assume a buyer is planning to purchase flats in Hyderabad. There are numerous companies available which are ready to finance the purchase. However as lucrative as it might sound, the cost of the loan increases the higher the loan amount is. Therefore it is advisable to seek the least amount of home loan possible. This can be done by making the maximum down payment possible. According to experts, if one prepares for 3 years to save, an adequate amount can be saved for house purchase.
- Have Good Credit History
Even though this might be surprising, the past does come back to haunt when applying for a home loan. If an applicant has had a bad credit history, then the availability of a good home loan becomes exceedingly difficult. Alternately, an end user with a good credit history can earn the maximum amount of loan with the minimum interest rate. Whenever a lending institution does a home loan eligibility check, it pulls up the CIBIL report and assesses an application according to it. If the credit history is poor, then one would land up with smaller loan amount and a higher interest rate. Hence having a good credit history helps.
- Making Lump Sum Payments
One of good ways to manage a home loan and reduce the financial burden is during the time of servicing it. If an end user comes across any windfall gains, it is advised that he/she pays it in the loan account. The effects are not seen immediately. However the principal amount is reduced which leads to a smaller interest payment in the long run. Large payments also pave the way for loan plan revision which can help reduce the EMI.
- Balance Transfer
After a few years of regular payments, the end user has an option of ‘Balance transfer’. This is a process where the loan is shifted to a different bank for better interest rates. Whether it is a home loan in Hyderabad or any other city, there are some predefined criteria before the transfer can take place. So the end user must learn about them and act accordingly.
Housing.com has a home loan section and a home loan guide. The former allows an end user to check home loan eligibility and choose a suitable home loan after comparison with others. The latter allows one to learn everything there is to know about acquiring, servicing and closing a home loan in India.