Have you finally figured out the right home loan product for you? Congrats! But before you close the deal, here’s a checklist of what you should do.
Home loans do not just make your property dreams come true, but also help you in saving tax and securing your future with a worthy investment. However, with so many home loan providers in the market, with an endless array of products, how do you ensure that you’re getting the best deal?
Worry not, in this article, you can find an easy-to-use checklist that gives you a list of all the factors you have to consider before you sign on the dotted line.
To avoid unnecessary hassles and to help you save a few bucks in the process, make sure that you follow the seven steps listed here while taking a new home loan.
- Do your Homework
This one goes without saying. Borrowers today have plenty of choices when it comes to home loan products. Instead of falling prey to smooth marketing talk, make sure that you do your homework. Educate yourself about the terms, benefits and other features of your chosen loan product and don’t hesitate to ask questions to the agent.
- Take a hard look at the EMI
The EMI is what you’ll have to pay month after month for the entire tenure of the loan. So, double check whether you’ll be able to afford it. Don’t be pressurized into opting for a bigger EMI that’s difficult to fit in your monthly budget.
Never make hasty or emotional decisions when deciding on the EMI. After all, the penalties for non-payment of the EMI could lead to troublesome issues and sometimes even in the loss of your property.
- Bring out your Negotiation Skills
Your negotiation skills are of high value when deciding on the interest rate. Instead, of just complaining about the high interest prices, you can list out the problems with it in a logical manner. Also, you can get a better deal on the interest rates when you have finalized on your property.
- Prepare all the necessary documents
Make sure that you have all the required documents like credit history, bank statements, identity proofs, address proofs, pan card and others. When you have all the materials prepared beforehand, you improve the chances of your loan getting approved instantly.
- Make sure to cross-check the Additional Charges
When you apply for a home loan, apart from the interest, you also have to pay several other additional charges like a pre-closure penalty, processing fee and much more. All these extra costs could end up proving costly in the long run if not correctly analyzed.
So, make sure that you’re aware of all the hidden charges involved and don’t forget to factor these in your load affordability calculations.
- Read the Fine Print carefully
This can’t be stressed enough. Even if your loan provider gives you a bulky, loan document, make sure that you scan it thoroughly. Sometimes loan agents may verbally spin tales of the benefits that are not present in the legal document.
To avoid such duplications and malpractice, make sure to read the document carefully and never sign it without understanding the implications.
- Never have doubts
A home loan is a major financial responsibility that comes with its own set of complications. So make sure, that you are completely satisfied with the terms and conditions before signing the product.
A home loan is the best and easiest way to buy your dream home. Ensure that you check these seven factors to land the perfect home loan deal for you.