Buying a home is a huge investment and responsibility. It demands detailed planning to choose the right property and lender. There are lots of housing finance companies (HFCs) and banks that offer home loans. Non-banking financial companies (NBFCs) like Bajaj Finserv also offer loans. Bajaj Finserv also provides pre-approved packages for home loan, personal loan and EMI finance different products. Not only does this simplify the process of availing financing, but it also helps you save on time. All you have to do is share a few basic details and check out your pre-approved offer. So before you close your deal explore every option to find the best possible home loan for yourself.
Compare: This is the first thing you should do before taking a home loan. Compare the offers provided by different HFCs and banks before you decide. Study the interest rates and other charges very well. By comparing all the home loan products you will be able to find the one that the suits you best. You can check.
Fixed Rate and Floating Rate: There are two types of housing loan interest rates available in the market — fixed and floating. In case of fixed rate, the interest rate will not change during the entire loan period. You end up paying the same interest rate throughout the whole tenure. But in case of floating rate, the interest rate gets revised at regular. If you think the interest rate may fall then you should choose a floating rate. If it is expected to rise, opt for a fixed rate. If you are on a floating interest rate, no charge will be applicable if you want to pre-pay the loan. If you borrow on a fixed rate, the lender may add some charges.
Think beyond the Bank where your have your Salary Account - You may have received a ‘pre-approved home loan’ offer from the bank wherein you have a salary account. Do not fall into the trap. It may not be thelowest home loan interest rate available in the market. Lenders like Bajaj Finserv have good offers on home loans. Before you finalise, do compare the offers of all leading lenders.
Negotiate the Rate of Interest: Lenders mostly determine the interest rate within a certain range. The actual rate depends on your eligibility and credit score. A better eligibility can help you to earn a better interest rate. In this respect, Bajaj Finserv is ideal as it always welcomes negotiations from customers.
Improve Your Credit Score: A good credit score can help you to get a good home loan deal. So you will be in a better position to negotiate with your lender and you can get a home loan at a lower interest rate. But it always helps to check your eligibility first. Use a home loan eligibility calculator to figure out where you stand.
Answer these questions before you take the final call. If you are satisfied with the response, go ahead with your plan:
Have you read the documents with care?
Does the written offer match the deal that you got?
Is the interest rate fixed or floating?
Are there any hidden fees?
What if you pre-pay the loan? Will any extra charges apply?
What is the tenure of the loan?
There are lots of HFCs in the market with their lucrative packages. But do not feel tempted by these. Home loan agents often try to attract customers by quoting interest which seems to be a low rate but is actually a high rate. Always read the documents well and check with authorised representatives. Use a home loan calculator to check for affordable EMIs and easy tenors. Never forget to take the rates in writing before giving your documents for processing.