Who would not dream to get the home loan at lower rate of interest ? in spite of many strict regulations on the home loan eligibility, banks do compete with each other to offer house loan to few people. They even enjoy many benefits like processing fee waiver, discounts on the interest rate, quick loan approval and much more. All this is because they are ideal borrowers. Who is this ideal borrower ? do you want to become one among them to enjoy more benefits on a home loan? Continue to read more to know how one can enjoy more benefits on your long-term home loan.
Dig Out Ways to Get Home Loan at Low-Interest Rate
The banks will consider you as an ideal borrower when there is less risk involved for the lender in terms of defaulting the loan. The ideal borrower will have good credit history and payment track record. You will gain more points as an ideal borrower if you are depositing 20% of the house value as a down payment and you are purchasing the house for own residence. It is difficult for most of the Indian buyers to arrange 20% towards down payment. However, there are many other possibilities to get the home loan at lower interest rate.
Get a guarantor
When you want to stay as an attractive borrower to the lender, then get a guarantor. If someone who owns a home cab serves as a guarantor for you, you can get the loan at a reduced rate of interest because their property can be used as additional security. Most of the lender allow an immediate family member to serve as guarantor. However, this varies from one bank to the other. You should keep in mind the guarantor will be liable to pay the loan if you default it.
Precautions for self- employed If you are self- employed applying for the home loan, you will be in a strong position and will be eligible to get the loan at reduced interest rates if you have your finances in order. Lenders look at the consistency of your income while considering the loan application and look for the transparency while assessing the risk so, you should make sure all your recurring and non-recurring expenses before applying for the loan.
Correct your credit history
Credit history is one of the most important factors considered by the bank when you are applying for the loan whether you are salaried or self-employed. They will go through your credit report with fine-tuned comb to look for any defaults in the payment of credit card bills and any other loans if existing. You should also get your credit report ahead and check for the errors in the report to deny processing the loan later.