The increased number of home buyers means that housing finance companies now offer Home Loans at attractive rates of interest.
Processing involves time and resources, and you have eligibility norms to adhere to. A Home Loan is a long term affair; this makes it crucial that you do a good amount of research and homework before you choose your lender.
If you’re planning to buy a home in the capital city, here are some tips that can help you zero in on the best available Home Loan in Delhi.
Check the Interest Rates
Home Loan interest rates in Delhi vary between lenders, for a number of reasons. Though the base rate is the same, each lender applies its own processing and other charges, which leads to the variation of interest rates. Also, the type of loan—whether fixed or floating interest rate, or a combination of both—and the tenor of the loan have an impact on the interest rate.
Factoring in the above—and comparing interest rates across banks—will help you choose the right financier for your Home Loan. You have online facilities to compare interest rates charged by banks and NBFCs.
Check the Amount of Funds Offered
When you apply for a Home Loan, you will be lent only a percentage of the cost of the property.
While most financiers approve loans up to 85%, some offer less. Choose a bank that offers higher pay-outs on Home Loans. This will save you the hassle of coming up with the rest of your property costs.
Loan Processing Time
There is a sizeable time gap between the time you apply for the Home Loan and the time approval is given. In this time, the bank conducts verification checks to assess your creditworthiness.
Each bank takes its own time, and a delay can hamper your efforts to buy the property of your choice. Choose a lender whose process is fast and transparent. Applying for Home Loans online is faster than the traditional way.
In addition to the rate of interest on your Home Loan; there are other charges that you’ll incur. These include processing charges (about 1% of the loan amount), legal charges, and prepayment charges (in case of foreclosure). Check these out. Choose the lender who charges the lowest processing fees, and waives pre-payment charges if you close the loan before the end of term.
Once you do your ground research on the above aspects, you will be better placed to identify the right lender to finance your Home Loan. Buying a home is a lifetime investment; choosing the right Home Loan lender not only eases your liquidity but also helps to keep your cost of acquisition low.
Exercise caution, and reap the benefits!