Your 5 step guide to being home loan ready

Your 5 step guide to being home loan ready


Buying a home could be a daunting task especially if you are a first time home buyer. You have to do some background research on suitable neighbourhoods, zero in on a project that meets your needs and want and most importantly allocate funds for it.

Since a majority of the home buyers resort to taking a home loan there are a few things you need to keep in mind before signing on the dotted line.

Below we give you a few pointers that will help you get your dream home in a hassle free manner.

1) Look for options After you have decided on the property you want to buy start your research. Begin by looking for options as the market is filled home loans which have different rates. So instead of blindly trusting an agent, do you research and ask questions. Sit down and draw an estimate keeping in mind you future and talk it out with the bank executive.

2) Calculate your EMI Draw an estimate of your monthly income and expenditure and based on the remaining amount calculate your EMI (Equated Monthly Installments). The amount you can spare on a monthly basis can be your EMI. It’s not a bad idea to get a second opinion so speak to a professional agent who can help you ascertain an EMI amount that you can afford.

3) Bargain Despite the ROI (Rate of Interest) being fixed by financial authorities there is still space for a bargain. So don’t think twice before negotiating. You could end up saving a few thousand on the entire amount that needs to be paid. So base your conversation on that and grab a good deal.

4) Credit card scorecard You might think you are eligible to avail a bank loan but the bank might not think the same. So begin by collecting the history of your credit card payments. The bank is very particular about verifying your credit card payment history so ensure you have been paying your debts on time. If your CIBIL score is high it will be an added advantage so ensure your score is more than 750. If you do, you could bargain on having a lesser ROI.



5) Scrutinize the papers Before you sign on the dotted line, please read all the documents carefully. There are high chances your papers could miss out a few points where you might have negotiated. Do not trust the agent and blindly sign papers. Scrutinize the papers, read all the terms and conditions and only then sign.

Happy Investing

Source:Moneycontrol.com