Having a home not only brings with a sense of identity and peace, but it also reaps numerous financial benefits. When you want to buy your new home or purchase a property for investment purposes, banking and non-banking financial institutions have lucrative credit facilities.
If you are not in favor of liquidating your savings to buy a new home, opting for an online home loan can be the best option to manage your finances when you are short of cash. You can avail of flexible repayment tenure and affordable interest rates to repay your online home loan at your convenience.
Here are the top 10 topics to make your online home loan application successful.
Compare different loan options
Before applying for a home, conduct thorough research on different factors that constitute a home loan, such as down payment, interest rates, and loan tenure. Researching several options will enable you to make an informed decision, enabling you to avail of lower interest rates and long loan tenure.
Choose a suitable EMI
It is advisable to apply for a loan amount you can afford to repay its EMIs without any delays. To determine your EMI affordability, you can use an online home loan EMI calculator available for free. Using three components – Loan amount, interest rate, and loan tenure, you can figure how much you can pay every month.
After securing an online home loan, you have the burden of repaying the loan amount with interest. So, you will need to draft a monthly budget and ensure that you follow a strict budget to meet your EMIs without delays. You must maintain credibility and avoid any overdue or increased rate of interest.
Consider the loan tenure
The repayment tenure is another crucial factor in an online home loan. Long loan tenure leads to higher overall interest rates. If you have the budget, opt for a short-term home loan with higher EMIs to enjoy a lower interest.
Maintain a good credit score
Your credit score indicates your creditworthiness and is considered one of the essential factors in your loan application. The higher your credit score, the greater your chances will be to secure a lower interest rate.
Know foreclosure norms
Foreclosure allows you to pay your loan amount before the loan tenure matures, reducing the expenses and increasing your credit score. It would be wise to keep an eye on the foreclosure norms set by the RBI.
Ensure to meet the eligibility requirements
Before applying for an online home loan, It is crucial to check your eligibility on the lender’s website and ensure that you meet all those requirements. Make sure to keep all the requisite documents ready.
Keep an eye on additional charges
There may be additional administrative, processing, or service charges in the terms and conditions of your home loan. It would be wise to discuss additional charges with your lender before signing any document.
Carefully read the loan documents
It is crucial to be aware of all the terms and conditions of your loan. You must carefully read all the documents and ensure that you agree with everything mentioned before signing the loan papers.
Assess your needs
Before applying for a home loan, always assess your needs to determine your home loan EMI affordability. You should choose a loan amount that you can afford to repay without any defaults or delays.