Choose your home loan lender carefully. Here are the tips!
Most of us look forward to investing in a residential property and calling it a home; however, funds become a major area of concern for most of us. We get the assistance when we approach banks or housing finance companies to fund our property purchase. However, nowadays there are number of options to choose from and selecting the best home loan lender is extremely important in order to avoid the hassles linked to availing a loan. Short listing an ideal lender can be a tricky process; therefore, Makaan.com lists some tips that will help you in your search for the best investor for your dream home.
Decide on a property
Before applying for a home loan, you should always finalize your property. It is important because many banks have tie ups/preference with select areas or builders and developers. Certain banks lend for property that are is already furnished, while others lend for self-constructed or under-constructed property. Therefore, it is better to finalize your property before searching for lenders; as and when you finalise the property the lenders will also go through a series of documentations and approvals.
Verify the Lender's Credentials
It is extremely important to check the credentials of all the lenders in order to shortlist one. The reputation of the lender can be cross checked by finding out whether the company has received any awards or has been assessed independently, what are the reviews of its products and services. Get detailed information about each lender and compare their offerings before the final selection.
Quick Processing formalities & Disbursal
To have a good start to your new home, you should always deal with a lender who is fast to process and disburse your loan. Check with people who have dealt with the lender before to find out whether the documentation and commitments were fulfilled on time.
Verify Terms & Conditions
Often lenders levy certain repayment terms and conditions. Before finalizing your lender, you must clarify the following conditions:
• The fees charged for transferring the balance amount to another lender.
• The terms for prepayment charges.
• The terms and penalties for late payment.
• Terms regarding extra costs such as valuation fees, processing fees and legal charges.
Negotiate On Home Loan Rates
If you have a decent income and a good CIBIL score, then you can always negotiate with various banks regarding home loan rates and get a good bargain.
Check For Mutual Benefit Tie-Ups
Today, most of the builders and banks have tie-ups with each other for mutual benefits. You can check for such tie-ups and take advantage of them. Find out about such deals that will help you get the loan at the best possible rate.