Factors that influence your Eligibility for Getting a Home Loan

A decision to buy a dream house of your own is very important and a life-altering one. Before approaching to a lender, not only do you have to be adequately prepared, in terms of finances, but apart from this, you have to ensure that the conditions are correct for your home loan at Low-interest rates application to go through smoothly. Some of the factors as discussed could become an obstacle if not taken care of within time.

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When you apply for a home loan, do not forget to check your home loan eligibility by using a home loan eligibility calculator that works on three parameters- Required Loan Amount, Rate of Interest and Loan Tenure. Home loan is something that you are getting into a long-term financial commitment with your eligible lender. Prior to getting a home loan, put in your best efforts and do your best to prepare in terms of getting your papers in order, getting the funds ready for the down payment. Besides this, your lender may also put you through a rigorous credit score or CIBIL Score assessment process to ensure that lending to you entails the minimum amount of risk.

So, do not forget to check your home loan eligibility before applying for a home loan.

Additional Reading:- Factors that influence your Eligibility for Taking a Home Loan

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How to Keep Away from flat interest rate in case of home loan

A home loan is an amount borrowed by individuals from banks or other financial institutions for construction, purchase or repair of a residential property. Lenders give the loan for a fixed period of time and charge interest on the amount borrowed, which has to be paid by the borrowers along with the principal amount. The interest rate on the loan can be calculated in two different ways – Flat interest rate and reducing balance interest rate. A flat interest rate means that the interest component on the loan will remain the same throughout the tenure. The interest will be calculated on the entire principal amount until the tenure comes to an end. It is calculated using the following formula:

Interest Payable per installment = (Original Loan Amount * No. of Years * Interest Rate p.a.)/ Number of installments.

Image result for home loanThe interest payable is generally more when it is calculated using the flat interest rate as compared to reducing balance interest rate. A flat interest rate is a gimmick by lenders to attract customers into taking a loan without making them understand about the entire scheme. Consumers who are in immediate need of money fall for such schemes and end up paying higher amounts as interest. Hence, always ask the lender about the interest rate calculation method before signing off the final loan agreement. You can also spend a little time in the calculation of the total interest payable and choose accordingly. Also, always take into account costs like processing fees when you are comparing loans from lenders.

 

Design your living room in amazing way

We all spend a lot of time in our living room, so it not only needs to look great but should be comfortable and spacious. Your living room should work as a space for entertainment and relaxation. You can make your living room a perfect place by understanding different aspects that go into designing it. Colour scheme is one of the most important aspects of designing. A common rule while deciding on color is that it has to be from a neutral palette which is based on beige, black and white. Next, if your living room has a natural focal point such as a fireplace, consider designing around it. Face the seating towards the focal point to have a clear view. If there isn’t a natural focal point, you can create one. Also, avoid putting furniture too close to an entryway.

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Focus on using as much natural light as possible. However, don’t rely on a single source of light to your living room and try to blend several layers of light from multiple sources. Upgrade your living room with sleek TVs, PCs, and speakers. If you want to increase the visual space of your living room, consider adding a mirror. Be strategic when adding the mirror in your living room – hang them at eye level so they reflect your artwork, furniture and so on.

Rugs can also make the room look comfortable. In conclusion, these points can be constructive when you are looking to design your living room. Remember, if you have a running home loan and you are in urgent need of funds to design your living room, you can approach any bank or NBFC. They can offer top-up loans to fulfill your dreams. You also have the option to apply for home improvement loans if you are looking to renovate your house.

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You can apply for the loan both online as well as offline. You can also compare the interest rates offered by different lenders through various fintech lenders and choose the one meeting all your requirements.

Source:-Design Your Living Room In The Most Amazing Way

These Points to check before you apply for a home loan

Everyone wants his own dream house but because of the high cost, it is not easy to purchase a home. Nowadays, the cost of homes are very high, requires a one-time huge requirement. You can solve this problem of finance by simply taking a home loan. Nowadays almost all the banks and NBFCs offers home loan at an attractive rate of interest. They offer a number of benefits to attract customers on a large scale. You should check some important points before taking a home loan like you have to do proper research on your own, don’t blindly trust the agents.

Prior research helps you take a decision better way. You should know the difference between the fixed and floating rate of interest. Floating interest rate fluctuates with market economics and interest rates are linked to a bank’s Marginal Cost of Lending Rate or the NBFC’s base rate and the fixed-interest rate brings a sense of clarity when it comes to loan repayment of the loan EMIs. You should check your CIBIL score before applying for the loan. CIBIL score ranges between 300 to 900. 750+ score is considered a good credit score. You should make sure that you will not pay extra charges at the time of foreclosure of the loan amount as RBI banned foreclosure penalties.

Additional Reading:-Points to check before you apply for a home loan

Compare all the rate of different banks and NBFCs and read all the terms and conditions carefully to avoid any kind of fraud. So, these are the thing you should consider before applying for a home loan.

Learn how technology is making things easier to get home loans

The advent of online technology has made the online process much easier and reliable. It has shaped a lot of industries in modern times and it also includes the banking sector. Not only has it become easier to apply for a home loan but the process has also become faster and smoother as well. Let’s take a look at how technology has helped people to get home loans easily. Firstly, it helps to decide if your loan application would be accepted or rejected. This process used to be manual. Now, thanks to technology, this process is taking place instantly. Banks and other financial institutions can right away point out if you can get a home loan based on their credit policy and other regulations. Next, with the advancement in technology, lenders can now use valuation tools to figure out an estimated value of your property.

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Customers can also use these tools to get a better idea of their property. Further, loan application processes are steadily moving online and it is an easier process as well. On top of all this, if you apply for a home loan online, chances are you will get better interest rates and offers. Plus, it’s convenient because you can apply for the loan from any location. Lastly, electronic signatures are helping both the lenders and the borrowers to send electronically signed documents to each other. It saves time as well as money since there is no postage nor traveling involved. Hence, this means that applying for a home loan has become extremely easy with the advent of online technology. Approval takes a really short time so it gives you more time to assess your options.

Pre-approved Home Loan – Way to get your Dream House

Buying a house is a dream come true for several people. However, due to the rising price of the property every single minute, only a few are able to afford such a whopping amount. In such situations, buyers turn to banks for home loans. And to make this process easy and comfortable for you, many banks and financial institutions offer pre-approved home loans to their customers. A pre-approved home loan means that the buyers are given loan by banks and financial institutions before they finalize the property.

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The procedure for a pre-approved loan is the same as the regular home loan, but you are not required to submit property documents. The pre-approved home loan requires your bank statements, income tax returns, salary slips, identity proof, income details, and PAN proof. You should have an excellent credit score too. A few advantages of availing a pre-approved home loan are: a) Faster loan disbursal b) Focused house hunting c) Better negotiation power d) Better planned finances. Before availing a pre-approved home loan, check for penalties and charges. Also, opt for pre-approval only after selecting a few properties.

Additional Reading: –Pre-approved Home Loan – Key to your Dream House

Hence, a pre-approved home loan gives you a head start that a regular home loan doesn’t. You can start planning for your home well in advance and be ready to purchase it at the right time without having to deal with a last-minute loan rejection.

These Factors affect your home loan EMI

Taking a home loan is one of the biggest financial commitments that you make, due to the high amount involved. Hence, this decision should be made after careful evaluation of all factors. The most important factor that you should take into consideration before applying for a home loan is your EMIs.

Image result for Factors that can affect your home loan EMIWhen you are calculating your home loan EMI, ensure your financial life is not adversely impacted due to the home loan. Take into account all the factors that can have a direct influence on your home loan EMI. The first thing that you should keep in your mind is interest rates. If you have taken a home loan at floating interest rate, there would be a change in the EMIs depending on the prevalence rates in the market.

Whenever there is a dip in the bank rates, your EMIs will reduce significantly. Also, they do not involve prepayment penalties. Next is your loan tenure. A change in your loan tenure can have a great impact on your monthly installments. The longer the tenure, the lower will be your EMI and vice versa. Further, it is highly advisable to check the pre-payment clauses with your lender before you sign the loan agreement.

Lastly, home loan borrowers can shift their home loan to a different lender to avail a lower interest rate benefit through a home loan balance transfer. Hence, there can be several factors which may impact your EMI during the tenure of your home loan. Carefully compare all the home loan offers available to you before making your final choice.

ALSO READ: – Factors that can affect your home loan EMI