Home loan applicants should make a down payment of at least 10-25% of the property value. The higher the down payment, the lower the risk of the lending bank, and the quicker your loan will be approved.
Save tax on home loan: To buy your own property, the interest of up to 2 lakh given on a home loan will be tax-free. If both the husband and wife are working, then both will get a tax benefit from the loan in their name. So it is better to buy your own house than to pay rent and save tax on paying EMI. There is a tax rebate of up to 2 lakh rupees annually on the interest paid for a home loan.
Home loans are the most profitable business for banks. In this, the bank gets interest for a long time. That is why they do aggressive marketing. But this does not mean you will get the loan easily. For this, the processing of banks is strict and the loan can be approved only after much scrutiny. Whenever, apply for a home loan. Keep some things in mind.
Make more down payments
Home loan applicants should make a down payment of at least 10-25% of the property value. The higher the down payment, the lower the risk of the lending bank, and the quicker your loan will be approved. However one should not compromise with the emergency fund or its financial goals to increase the downpayment amount
If your credit score and history is good, then there is no delay in getting a loan. So, when applying for home, make sure to pay attention to this. A good credit score can give you a cheap home loan. Also some discounts can also be found. So, while applying for a loan, please find out on the credit score. If you check the credit score beforehand and it gets bad then you get a chance to improve it.
Compare interest rates
Some research must be done before a home loan. You should find out about the banks of different interest. However, one should not apply to too many banks. Home loan applicants should first apply to the bank where they are customers. There they can get some additional facilities. However, before applying, the interest rates, offers and discounts and conditions of different banks should be assessed. You can get interest rates and other information at the online market place.
Must see EMI Affordability
The home loan applicant has to see how comfortable he is in paying EMI from his income. Banks also take care that the EMI of the applicant should not be more than 50 per cent of his income, but if there is any debt on the applicant, then you should try to repay it from home loan. With this, banks will also be able to give him home loan easily.
Also include EMI in Emergency Fund
There are many reasons like loss of job, sickness, disability when one’s ability to repay home loan EMI can be affected. In such a situation, while making a six-month emergency fund, EMI of home loan should be arranged in it. With this, you will not have the burden of a home loan if you do not have employment.