Buying a home is an exciting albeit confusing experience. Most people need to get a home loan but few are aware of how to avail one with ease.
Here are tips on getting a home loan from the best luxury apartment realtor in Chennai.
- Save for a down payment
A home loan for an apartment in Chennai might mean that you need to put up about 20% of the total value upfront. This is called the down payment which you will tender towards the realtor upon booking the home. Considering property prices in the city, you might be expected to come up with a few lakhs. You need to start saving smartly to achieve this amount.
Figure out how much you need to save each month and adjust your monthly budget accordingly. Siphon the money into a separate savings account to keep track of how much you have reached. Alternatively you might have already saved up some amount from which you can take this down payment or dispose of some other asset and use the money for this.
- Check your credit score
To make yourself eligible for a home loan you need to have a good credit score. There are 4 major credit rating agencies in India, but most banks prefer taking your CIBIL score into account. The CIBIL score is a 3 digit rating that can be anywhere from 300 to 900. The closer your rating is to 900, better the chances are for easy loan processing. Anything above 750 is considered a good CIBIL Score. Even if you have a low credit rating, you can check with a financial advisor about improving the score. You can register with CIBIL for a nominal fee and check your score.
- Get your financial documents in order
Each bank has a different set of documentation that they require from you to process your loan. This documentation is for legal purposes and they follow the process stringently. Most Indian banks require a salary statement of minimum of 3 months if you are employed, address proof, proof of citizenship, age proof, etc. You can call the loans section of the bank you choose and ask them to send you the list of documents.
- Find your best option on a loan calculator
Check out a loan calculator otherwise called as EMI calculator or mortgage calculator on how much you might need to pay out monthly towards the loan. You can adjust the loan amount, interest rates and time to figure out the best option that will be easy for you to pay back each month.
Do a preliminary check on the Lifestyle Housing EMI calculator.
- Compare offers between banks
Each bank has a different set of home loans and offers on them. You will need to directly check with the banks or check with financial sites that allow you to choose a few loan options and compare them. They highlight the pros and cons of each and you can make an educated choice instead of blindly opting for the first home loan you come across.
- Do a little research into interest rates
Interest rates have been fluctuating through the years. The government has brought a lot of rules and regulations on home loans, making it easier for the investors. Engage in a little research into interest rates and the trends that they follow. You can work out a pattern for the coming years and keep yourself prepared to meet the interest and the principal payments each month.
- Get prequalified for a home loan
You do not need to wait till you have booked your dream home to qualify for a loan. You can initiate the home loan process independent of the booking process. Ask the bank if you can pre qualify yourself for the loan. This helps you get the money faster as soon as you choose your new home. All you need is to submit the financial documents required by the bank and get a certificate that you have been approved for the loan. This also gets you better treatment from the realtor as they know you are a serious customer.
- Promptly respond to the bank officials
It is important to respond promptly to the bank officials. There are so many loan applications being processed in the bank that they process the ones with all the information first. There might be a few particulars left out when you gave the documents and the loan officer will follow up on it with you. Make sure that you have taken their number and are ready with any information that they might ask. This speeds up the loan processing.
- Take care of your credit
The bank will track your credit score at each point of the loan process. So if you started out with a good credit score, you will need to maintain it. Pay all your bills on time and do not apply for any other loans when your home loan is under process. The lender will be alerted to any negative change in your credit score immediately and the home loan will be put on hold.
At Lifestyle Housing, we are partnered with reputed national banks. We help you get your home loan processed easily with expert advice. We have a choice of 4 BHK apartments in Chennai for you to choose from. Our sales personnel will expertly guide you to the best home for your budget and what kind of loan would work for you. Contact us at lifestylehousing.