Loans are the most popular method of financing when it comes to getting a new home. Almost ninety percent of home buyers apply for a home loan before buying the property. Buying a Home is a huge milestone in one’s life. Hence, you should be careful with all the steps that you take when buying a property and applying for a loan. You can’t just go with whichever bank/financial institution that you see first. Before applying for a loan, think things through – get some research done and choose the best bank for you. Wondering how? We’ll help you out!
After you’ve confirmed your property, the next and most important step is to choose your bank wisely. Here are a few things that Home Buyers should consider while choosing a bank:
- Loan amount granted: The amount that you can avail as a loan is depended on your individual income. So consider the best possible amount that you can get with your monthly income and the bank that provides the same.
- Rate of interest: Although the loan amount might not vary as much in the case of different banks, the rate of interest surely does. The rate of interest decides the amount that you have to repay each month, which is the EMI. The lesser the rate of interest, the lesser the EMI. So always go with the bank that offers the lowest interest rate.
- Repayment terms and fees: Banks usually charge a processing fee to manage your loan application, so make sure to go for the lowest possible charge.
- Documentation: You obviously need to submit certain documents to the bank while applying for a loan. Some banks need only a minimal number of documents while some ask for plenty. Choose what’s best convenient for you.
- Turnaround time: You won’t want to wait a long time to get the money after applying for a loan, do you? So always choose a bank that has the shortest turnaround time so that you can get your hands on the money and the property as soon as possible!
