Way to your dream property through Housing loan…

Buying a house could be an exciting experience in life. You are on the top of your happiness while purchasing it. But finding the right home is more important. It needs lot of planning, spending hours or months looking for a suitable property of your choice and budget. There are lots of background checks like scrutinizing the area of living, travelling convenience, security aspects and finally scouting for the best deals on home loan. The most important part while taking Housing loan are interest rates applicable and judging the fact that your home loan does not turn to be too expensive over the duration of the loan. So, here are few tips to consider while finding the right home loan as easy as possible.

Savings

Depending upon your housing needs such as buying a new property, constructing, home extension or renovating it you are required to establish a monthly budget that will help you save enough money for your down payment. Banks or finance companies provide loan up to maximum of 80% of the agreement value of the house. Every bank or finance company has its own criteria under which you will have to show the margin money of around 15 – 20% handy before applying for loan. Therefore, make sure you have saved at least 20% of the down payment and also have little extra savings to cover a few months of your home loan payment. Recession, health risks or other perils don’t come knocking at your door so it’s better to be prepared to cover your expenses for couple of months.

Credit Score

A good credit score will put you in a position to attract the best deal on your Housing loan. It’s a good idea to obtain a copy of your credit report before starting to buy home. You will see what your credit profile looks like to potential lenders and can take steps ahead to improve your credit score if required.

Home loan EMI calculator

These are great tools for helping you understand how much loan amount you can avail, what is the interest rate applicable, processing fees associated, pre & post penalty charges applicable, etc. These tool help you stay prepared with the projected installment on your loans. They are very easy to use and can show how much your monthly mortgage payment would be under different home price, down payment and interest rate scenarios.

Prompt Co-ordination

When applied for Housing loan, it’s important to respond promptly to any request for additional information from your lender and the paperwork as quickly as possible. Waiting too long might cost more towards your housing finance. It might end up losing your finances for dream home or deposits you have made, if any.

Employment Status 

Whenever an individual has been employed in the same job or in the same type of job for atleast 2 to 3 years, it shows his or her stability, job security and continuous source of income for loan repayments. Therefore, a home loan approval is more likely. It is advisable if you’re consistent in any job for more than 2 years and simultaneously looking to buy a new house, wait until your loan gets approved before making any changes. Once you have your home loan, you can migrate to a new job.