The Kalamkar

Home Loan: Know these 5 important things before taking a home loan, otherwise you will face problems

Home Loan Tips: Dreaming of building a house, everyone first thinks about the option of home loan. People reach the bank to take loan with incomplete information. First of all they check which bank is providing loan at what interest rate. People decide to take a loan from the bank only by comparing the interest rates of all the banks. But this should not be done at all. Therefore, if you are going to take a home loan for the first time, then you must understand some things related to it very well, so that you do not face any problem later. Therefore, these 5 tips can be very useful for you.

home loadn

The Kalamkar News (Bureau). Everyone dreams of having their own house . But in this era of inflation it becomes a little difficult. In such a situation, home loan makes these dreams come true. 

A house is a need for everyone, but the way property prices have skyrocketed in the last few years, it is not easy for a common man to buy a house with his income. 

This is the reason why today most people fulfill their dream of owning a house with the help of home loan . But before taking a home loan, just looking at its interest is not enough.

It is important to understand many other things also. If you are also going to take a home loan for the first time, then know here some important tips related to home loan.

1. Before taking a home loan, check your financial condition 

According to home loan rules, you have to make some down payment first. This can range from 10 percent to 25 percent of the total price of the property . 

Also, after taking the loan, your monthly installment will start, which will continue for a long time. In such a situation, you should take a good look at your financial condition . So that you do not have to face any kind of problem later.

2. Decide the loan amount in this way 

Let us tell you that before taking a loan, you must calculate once how much installment you can easily pay after taking into account all the needs and liabilities. Only after this decide how much amount you have to take as loan. The simple rule is that your EMI should not exceed 40% of your take-home salary.

3. Compare loan features of banks 

While applying for loan, your credit score should be good. This increases your credibility and your chances of getting the loan approved. With a good credit score, you can sometimes get a loan at better interest rates. Apart from this, there is difference in interest rates, loan amount, LTV ratio, loan tenure and processing charges of different banks. In such a situation, before applying for home loan, compare the loan features of banks and then apply for the loan.

4. Benefit of paying more down payment

If your financial condition is good, then give higher down payment for home loan . This increases your chances of getting the loan approved. Some lenders offer lower interest rates to borrowers who choose a lower LTV ratio. But avoid using your emergency fund to make a higher down payment.

5. Be sure to keep an emergency fund

If you are going to apply for a loan, then keep an emergency fund with you. This should be equal to your EMI installments of 6 months. Many times, it becomes difficult to pay EMI due to job loss or any other circumstance. Due to this, you may be penalized and your credit score may also get damaged. In such a situation, your emergency fund is helpful.