Buying your first home or any home at all for that matter is in itself a daunting task! Having to deal with a builder, a bank, an interior designer, and other vendors just makes it even more formidable. Just as there are many flats for sale in Bangalore there are even more different types of home loan schemes out there. This article seeks to assist you in this home buyers journey as taking a home loan is one of the most important steps in the process. Especially for young bachelors or new families, this may be the most frustrating part about buying a home due to its unfamiliarity and often unfavourablity. Having a better understanding of this homebuyers can significantly reduce the level of stress and anxiety-induced while buying a home. If this sounds pertinent to you: here are 5 tips to decide which banks provide the best home loans.
Eligibility
The first thing to always keep in mind is eligibility. This as most already know is based on a multitude of factors. Ranging from credit score to past history. Apart from being eligible your past history with a specific bank or with other banks can also dictate other parts of your home loan such as interest rate, EMI or even the down payment. Essentially what this means is that the better your track record has been with, banks and timely loan payment or deposits, the better your chances are of securing favourable terms for your home loan, so make sure to maintain a good record as some factors may be out of your control such as age, income, or current liabilities. Therefore it is crucial to control other factors to compensate for any of the others you may be lacking.
EMI Calculator
Before approaching any bank, or builder it is always best to have an understanding of what all the numbers mean, while also going in with a rough estimate of what you are expecting, along with this you should also keep a number in mind that you are not willing to go over, ie your budget. With modern tools and it is easy to find this out are there are multiple home loan calculators and EMI calculators on the internet, where you can input your data and get a number you might typically see at the bank. Some banks even have their own online calculation tools which can be used before approaching them.
Interest Rate
Now when it comes to taking a home loan your EMI and interest rate. A rule of thumb is to aim for a lower interest rate which will also proportionately reduce your EMI payment amount. You may also have to choose between a fixed and floating interest rate. This decision is completely up to the home buyers discretion, as a fixed rate would mean it does not change whereas with a floating one the interest rate may change. It is best to choose a fixed rate if interest rates are expected to continue rising in the marketing, but you can choose a floating rate instead if you feel that interest rates will reduce in the future. While making this choice make sure to remember the loan period and take a long term view, as marketing expectations and sentiments can change over time.
Regulations
Those who are trying to buy new flats in Bangalore or anywhere else in India for that matter should already be aware of the constantly shifting real estate regulations, and the complete rehaul of the system thanks to the new implementation of RERA. Similarly, banks are also prone to changes proposed by the central government or the RBI. Homebuyers should stay vigilant and up to date in this regard to make sure they are aware of any new information that can favourable.
Additional Charges
Lastly, make sure to read through all documents to identify the type of additional fees the bank may levy on you in the future. This can include a range of fees such as Prepayment, services charges, percentage fees, etc. Having a succinct understanding of these can improve the home loan experience, as you are aware of exactly what charges are implicated, based on any transaction you make. There are a few other fees that should also be taken into account such as default payments, and penalties. Though these are generally avoidable, in the case there is any issue choosing a bank that prioritises customer experience over constant bureaucracy is always the best option. An important point to keep in mind is mandatory registration charges, stamp duty or any other unexpected costs you incur. For situations like these, it is best to set aside extra money, as a last resort.
These are just a few of the best tips to help guide you through this home buying journey. A home loan is an essential component of the real estate lifecycle, and choosing the right bank for your needs can make al the difference, in terms of experience and savings. In summary, it is best to understand your past record along with your credit score to determine eligibility, it is also advisable to calculate your EMI with an online tool, you must also understand the types of interest rates and choose the right one for you while staying on top of the latest news and changes in bank regulations, and the real estate marketing, lastly make sure to read all the fine print and make a wise decision with all factors considered. Now that you have found the ideal home loan for you, it is also time to find the ideal home! With multiple apartments for sale in Sarjapur road and the rest of Bangalore, visit Mana Projects today and find your dream home.