So many people prefer to go for a home loan as per their preferences and needs. But like all other loans, home loans also have certain considerations you must go through before deciding to go for them. Considering these aspects would surely be advantageous for you.
Explore Types of Interest Rates
You must enquire about the type of interest you must pay after taking the loan. There are basically 3 types of interest that you have to know about: floating interest rate, fixed interest rate and hybrid interest rate. Depending on the loan amount and type of home loan you choose to go for, the interest is also likely to be different. As a borrower, you must do detailed research about it.
Down Payment
The lender or bank is never supposed to approve the whole cost of a home as the loan amount. In most cases, they allow you to apply for around 70-80% of the home cost. But what amount is the rest of the cost?
Well, you are supposed to pay it from your pocket as a down payment. So before you apply for a home loan provided by a bank, you should talk to them about how much they would approve and how much you should make as a down payment. It would be useful for you giveme5.
Processing Fee
While applying for a home loan, there is supposed to be some loan processing fee that you are supposed to pay. So it would be essential to explore how much you must pay as a processing fee.
If the fee seems quite high, then you should look for another lender or bank that charges a reasonable processing fee. This is quite a vital consideration for you to think about. You have the option to go for an ICICI bank home loan.
Pre-payment Charges
After taking a home loan, you must pay EMI every month until the loan amount is paid. So you would try to pay the complete loan as soon as possible. In this regard, it is natural for you to want to make a pre-payment. But you may have to pay some pre-payment charges.
The charges may differ from lender to lender. So you are supposed to do prior research to know about it. If the pre-payment charge is reasonable, then you can go for it. Else there are always other options for you to consider.
Pre-approved Home Loan
It would be best if you also researched whether a lender has the facility of a pre-approved home loan. Getting a pre-approved loan is beneficial for you in many ways. First of all, it is faster and less hazardous. On the other hand, you can be sure of the down payment you would need to make.
Inability to Repay
It is wise to anticipate what you will do if you fail to repay the loan amount for some reason or other. The lender requires you to pay the whole loan amount via EMI each month. So you are to have sufficient time. But yet you may be unable to pay it. It is better to talk to your lender about this matter beforehand.
