How to Shop Smart for a House Loan in India?

A home loan is a wonderful way to buy a home without access to all requisite funds. But, more importantly, it is a financial commitment to pay home loan EMI for next 15 to 30 years too. Therefore, a desire to buy a dream home is not enough. You will need to shop smart in order to avail the best home loan in India. Even if you select just a reasonable one, you will need to take due caution and protect your financial interest. So, how will you shop smart for a home loan in India?


Hinge it to housing loan EMI


As most borrowers know, home loan is customizable and complex product. So, a right one for you may not be right for someone else. So, use housing finance research to your advantage rather than being restricted by it. But, most middle-class home buyers will need to keep housing loan EMI in focal view since it will be a determining factor. So, here are few things you can do before you send enquiries to housing finance companies in India.


•    Check your credit score and credit history. Get it into shape if necessary. Loan to income ratio and proper repayments will go a long way in improving your financial well being

•    Identify property, home loan tenure and interest rate you can work with

•    Gather sizable down payment. Do not depend on the loan for the major contribution

•    Gather all documents required for a home loan. All may not seem important. But, each serves a unique purpose and can be useful during the analysis


Get the best housing finance in India


If you can meet home loan eligibility criteria, you can apply to several housing finance companies. Then, you can compare the house loan offers. These offers will give you a significant advantage as you negotiate for the best house loan interest rates. Though, this negotiation is an acceptable norm, it is available for creditworthy applicants only. Most borrowers obsess over the interest rate and ignore other aspects of the loan. In housing finance market of India, other aspects can impact your EMI just as well. So, tweak the housing finance package well to match your needs. Here are the main facets to watch out.


•    Repayment option
•    Type of interest rate
•    Prepayment rate
•    Tenure
•    Co-applicants


Many options of lenders and basic negotiation skills can help you proceed and select the most suitable loan. But, a borrower must have the in-depth financial knowledge to personalise the package accordingly.  Then, you can buy your dream home with the most suitable home loan.

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About the Author

aishwaryamahurkar

Aishwarya Mahurkar is an experienced writer concerning the finance industry. Her articles help in informing her readers of the best home... (show bio)