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07 February 2011

The Right Way of Choosing the Home Lender

Home loan lenders are many in the market and the consumer is at the benefit of choosing the correct and appropriate loan from a reputed home loan lender. What are the criteria for selecting the right lender amongst the many available will be discussed in this article.
It is very important to note that property rates are on the rise and the loan amount involved will be substantial. Crores are involved in buying a flat and hence the home loan amount may come in lakhs and even crores. The available loan amount from any financial loan lending institution would be maximum 80% of the total price of the property. The rest of the 20% has to be given as down payment before going in for a loan.
1) The first step for choosing the right lender is to have a option of at least three financial institutions who are willing to o9ffer you home loan. This will depend upon your financial standing and loan repaying capacity.
2) Critically assess your financial position. Financial appraisal in a practical way is a must to decide the loan amount to be applied for.
3) How much loan amount is available is also important as many financial loan lenders have only a certain percentage of the amount from the total price of the flat offered as home loan.
4) The interest rate with which the loan amount is offered. Whether it is on higher side as compared to other lending institutions or they have additional facilities must also be considered.
5) The loan repayment schedule and the tenure for repayment is also an important criteria for selecting the right lender. If the loan tenure is adjustable and the EMIs are fixed accordingly as also if there is consideration for some period in case of failure to repay for a certain month then it is beneficial during unexpected crisis and financial emergency. Some lenders also are willing to take accumulated amounts instead of every monthly EMI.
6) Options available fro loan closure and the requirements for this are also to be considered. In case the borrower has decided to close the loan and repay the amount totally or when they decide to shift the loan from one lender to another better option then what are the procedures and penalties must also be discussed before selecting  the right home loan lender.

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