How To Pick The Right Lender For Home Loans
When you set out to buy your dream home, one of the most complicated decisions for you is choosing the right lender to take a home loan from. There is a large number of bankers and financial institutions ready to accept your loan application, but that does not mean you are getting the best deal.
Home loans typically lock you for good 15-20 years, or may be more. So, it is important to make sure that you do proper research before finalising the best mortgage lender that meets your needs.
MakaanIQ shares a few things that you must consider while choosing the right mortgage lender for yourself.
More than the 'lowest-rate deal'
Selecting the mortgage lender should not be limited to taking into account who offers the lowest rate. That a lender is offering the most competent rate in the market is no surety that it will offer the best services as well.
The lender you choose must be approachable, as you will need lending services and may have queries from time to time.
Do some research before you choose the lender that is right for you. It is imperative for you to do the background check of the lender, irrespective of what you hear about him. Procuring contact details of past clients of the lender and approaching some of them may prove useful. Learning as much as possible during the initial stage will help you save some headache later on.
Not only can you check out the details of these lenders that you have shortlisted on their own websites, but you can also visit various borrowers' forums and read reviews of people who have availed of home loans in the past.
Use comparison as a tool
Sit down and hold discussions with two or three lenders before you make up your mind. That will help you understand which one is a good fit for your specific needs. That will also help you assess your loan requirements. Shortlist the one that qualifies you for a home loan, offers advice on ways to improve your credit, and talks to you about your mortgage payments in the context of the rest of your financial plan.
Do not get carried away
Never get carried away if a lender sounds like it is offering you the best deal ever; that's the lender's job. Lenders these days come with catchy titles for their executives – loan officers, consultants, senior experts, etc. Clear your doubts and ask for financial estimates; if you find the person sidestepping the tough questions, that should ring the alarm bells. Lenders may push loans that sound great but might not be in your best interest.
Know what you want
Before you start your research on finding the best lender, you must analyse what you want. Consider the kind of home loan product (fresh purchase or secondary property, etc), type of lender (small or large), type of interest rate (fixed or floating), and options for your down payment, that you require. Every borrower's situation is different, so it is significant for you to find the one that suits your specific needs.
Buckle yourself up
Make sure that you are adequately prepared yourself, before you zero in on a mortgage lender and are ready to sign a loan application. The basic parameters and criteria to qualify for a loan remain universal.
Watch: Easy Home Loan Tips
One bad lender can cost you lakhs of rupees and leave you feeling the pinch every month. Choose your lender wisely!