The Indian festivals are not just about grand celebrations with loved ones, but it is also the time of the year when you would want to exchange gifts and make new purchases. This year you can consider gifting your family a new abode and secure their future.
To support your home buying endeavour, you can avail of a home loan as many financial organisations provide special festive offers on loans. The offer could be in terms of low interest rates, zero processing fees, etc. So, if you are looking to invest in a home and want to avail of a loan, here are a few things you must consider.
Do you research well
Today, with the easy accessibility of information online, you must do your research well about the different loan options available in the market. A comprehensive comparison of the different offers in terms of home loan interest rate, repayment tenure, and other details will help you make an informed borrowing decision.
Also, it is a wise idea to educate yourself with the various home loan-related jargon. This will help you understand the terms and conditions better and you can be in a better position while negotiating the offer with the lender.
Stick to your budget
You may come across various home loan festive offers from lenders who are willing to lend you a higher amount. While it may be enticing to borrow a larger amount and purchase a bigger home, it is better to stick to your budget. This will help you manage the repayment better without compromising on your regular expenses.
Maintain your credit score
All lenders consider the credit score as an important factor to determine your home loan eligibility. While you may want to take advantage of the festive low-interest home loan offers, you may not get your application approved if your credit score is low. So, make sure that you maintain your credit score always and you meet the lender’s specific requirement.
So, based on your repayment capacity, if you can afford to pay a higher EMI every month, you can choose a loan for about 15 years or less. But if you want the EMI to be smaller and affordable, it is better to choose a long-term loan tenure for 20 years or more. This will keep the EMIs affordable, and you can repay the same without any hassles.
Read the documents carefully
Before you sign the loan documents, you must read the terms and conditions carefully and understand every clause. This will help you avoid legal hassles in the future.
Final Word
Now that you are aware of the important factors to consider, you may make the most of availing a home loan during the festive season and make your dream of being a homeowner come alive.
