How do you prioritize home loans? What criteria would the common man go in for ranking home loans? Here we discuss a few pointers in selecting your best home loans. With every financial loan lending institution having different rules for landing along with different interest rates with which they offer loans it is the borrower who has to gain right information and come up to the best home loan for him.
The housing finance company that needs less documents and you fall into their eligibility criteria. That is the documents that you can provide are what the company requires as proof to approve your home loan. Here we know that every financial loan lending institution has different eligibility criteria and if you do not fall into this category there are fewer chances of you getting your home loan approved. Apply where only you fit to avoid rejection of your loan application. Point given here, for the institution where you are eligible for a loan.
Interest rate with which home loan is offered is the most important but not the only criteria for ranking a home loan. Get the lowest interest rate for your loan amount. Point given here for lowest interest rate on home loan offered.
Higher loan repayment tenure will give you more time for repayment and in case you have increased finances you can always repay your loan sooner. This longer repayment tenure will increase your monthly EMI amount to what you can manage easily.
No prepayment charges and penalty for early closing of your home loan many finance companies do have a 2% charge on closing of your home loan before the loan tenure.
Transparency in service offered by the housing finance company is one of the most important criteria for selection and ranking a home loan.
Finally an important note to look at other people’s experience by talking to your friends, relatives and colleagues regarding their experiences with the lending institution and also their responses in case of default or failure to repay the home loan on time. This is the most important criteria for ranking a home loan best is by their after service or customer help services offered by financial loan lending institution. .
Sit down and jot all your income and expenditure in a realistic manner and then begin with your individual case. Every aspect will differ for different people and what finance company and home loan is first rank for you may not be first for another. So go in a realistic manner and rank your home loan housing company and then select your first home loan.