Thinking to buy a home for the first time? You may be surrounded by a sense of excitement. Never get carried away. You should act cautious and pick some important tips and tricks to make your first home loan approval easy and smooth. These tips do help to save few costs on purchasing your home too. Most of the doubts regarding the purchase of the loan get clarified with the help of key information stated in the current article. To know the complete detail, read my previous article about “TIPS for taking Home Loan- part 1”( give hyperlink of this article ) before you continue to go through this article.
Factors to Consider While Taking a Home Loan for The First Time
Choose the bank with your salary account
It is obvious that you compare the rate of interest on the home loans and other fee associated with the banks before taking a final call on the bank that you have to take the loan from. There are loan comparison sites like logintoloans.com to help you smoothen the process. If you realize there is a slight difference in the rates offered by the banks(less than 1%), prefer to choose the bank where you have your salary account. The advantage you gain here is quick approval of the house loan and easy management of EMIs and pre-payments through standing instructions.
Good credit score
Approaching the banks with the poor credit score will let you face rejections for any type of the loan. If you have plans to reach the banks for a home loan, pull out your credit report to ensure you have a credit score that is needed for the approval of the loan. Many credit bureaus are offering it for free. A credit score above 750 points is considered excellent for home loan approval.
How to get the best rate?
Housing finance is a long term loan and it is important for the borrower to get the loan at best rates. On comparison of the home loan rates offered by different banks, you can choose the banks that offer best rate. While comparison, don’t ignore the fact that choosing the bank that has partnered with your builder is going to shower more benefits. A Little homework will let you know about the seasonal offers offered by the banks.
Interest rate choice
As a first time home buyer, it is advisable to go for fixed rate of interest over the floating because the EMIs of the loan remain fixed till the end of the tenure. The choice of the interest rate on the home loan should depend on the market scenario. If you are sure that interest rates are going to slash down, go with floating interest rate.
Prefer approved projects
Choosing the projects that are approved by the banks ensures you clear title because the approval is given after deep scrutiny. You will be benefitted with an easy approval of the loan if choose the project approved by the banks.