Home Loan
While taking a home loan, the only factor that has an absolute impact is the interest rates charged by the banks. However, individual requirements vary and the one-size-fits-all principle may not apply to all home buyers and home loan seekers. Buying property You should consider before availing of a home loan: Loan amount Generally, banks and financial institutions offer loans up to 80 percent of the total amount lent by you for your chosen home.
Some banks even consider lending up to 85 percent. It is advisable to go for the highest possible loan amount if you are low on the initial down payment. Down payment is the amount that you have to pay in cash when your home purchase starts. In many cases, home buyers take personal loans or gold loans for down payments.
Apart from being stressful (it is another lengthy paperwork). action is required), this can be costly in the long run. Processing Time The time taken for processing home loans differs between banks. If a bank takes a long time to process your loan, it involves several visits to your bank branch. Before considering taking a loan, do research about the efficiency of the bank or finance company that offers frills home loans.
Insurance
Time, banks push buyers to take insurance policies. In most cases, these insurance policies are either a sister company of the bank or an insurance company with which they have an agreement. While it is wise to ensure your home, insurance may not necessarily have the best quote. That you are coming from the bank that you are taking a loan from. If you intend to go with a combination offer, do all the calculations, consult others, negotiate insurance before you even consider it.
Discount and Interest rate
Discounts Some financial institutions, especially cooperatives and public sector banks, offer special discounts during festivals. They offer low-interest rates to women, senior citizens. If the loan is taken on the basis of such a discount, it will lead to huge savings.