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How to Choose the Best Home Loan
Lender
Buying a home loan can seem complicated but
if you go systematically, you will soon be holding the keys
to your own home!!! The first step towards your loan is choosing
the best housing finance
company which can guide you through the entire procedure.
Given below are the tips to choose
the best home loan lender:
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Always Choose the Lender After
Finalizing the Property: Shopping for the home
loan comes after identifying the property. While most
banks offer finance for ready to move in properties whereas
some banks lend for a property that is being self constructed
or a property under construction. Therefore, finalize
your property first and shortlist the financing options
thereafter.
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Be Sure About Your Loan
Eligibility: Banks follow different criteria
to calculate loan eligibility. In case, loan eligibility
based on your income is an issue, you should talk to different
banks to find out which bank can provide you with the
maximum amount. There is also an option of clubbing your
own and your spouse's income to increase your loan eligibility.
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Be Ready to Loose Your Processing
Fee: Banks charge some processing fee to get
any loan application on roll. The fee is generally around
0.50% to 1.00% of the total loan amount. Paying the processing
fee does not ensure the clearance of the application but
it ensures that your application will be seen. Moreover,
processing fee is non refundable. Whether your loan is
sanctioned for a higher or lower rate, you will not get
the processing fee back. Never trust on the verbal promises
made by any bank representative. Get everything in writing.
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Fixed or Floating Rate of Interest:
In case of the fixed home loan rate, rate of
interest does not remain fixed for the entire tenure but
for a certain period of time. The lender has a right to
arbitrarily change the rate further. On the other hand,
if you are opting for the floating rate loan, be sure
to check whether the rates of your chosen lender had floated
down over the last couple of years.
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A Stitch In Time Saves Nine:
Never haste the shopping process. Cost of your
loan largely depends on how you negotiate. Home loan lenders
primarily take your income and personal profile into consideration.
Apart from rate of interest, what points you should take
into account while choosing the best financer are processing
fee, legal charges, pre-payment charges, valuation fees,
and other hidden costs.
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