Get a home loan ain’t easy. There’s many thing we need to consider to get the best deal as it is a biggest amount loan that we must take.
Read this 7 steps we need to takes and factors that need to considers :-
1. Calculate the Loan Amount Required
– List down the following steps to raises finance.
i) Check how much money you can raise on your own by liquidating your assets and savings
ii) Then calculate the loan amount required
2. Look for the best deals in the Market
– Now you must search and scanned the market for the best home loan options available. The parameters we need to examined were interest rates and tenures, depending on the nature of the bank-nationalized, private or cooperative.
– List down the following steps such as :-
i) Research on the internet for the best home loan deals, keeping in mind factors like interest rates, tenure, pre-closure
ii) Approach your local bank for the best offer, if you think you can get more options, elsewhere, do not hesitate
iii) Negotiate the final amount that is required for this loan (Total cost of property – Money in hand = Loan amount required)
3. Dig deep and understand the complexities of the home loan
– There are quite a few factors that we need to look into before commotion to a home loan. We need to read through the loan agreement and understanding the clauses to become aware of how these clauses apply in different scenarios.
– List down :-
i) Interest rate
ii) Maximum loan quantum
iii) Loan tenure
iv) Terms and conditions
4. Arrive at a comfortable Equated Monthly Installment (EMI)
– Before considering EMI, you need to list down this :-
i) Current salary
ii) Projected appreciated salary or income for the next 20 years
iii)Projected overhead expenses for the next 20 years
iv) Current sources of income – single or multiple
v) Expected income for the next 20 years
vi) Ability to sustain the EMI burden, till the end of the tenure
5. Documents needed for applying the loan
– The documentation process is important. You need to prepare check list for :-
i) Salary statement. Most of financial institutions need 3 month’s salary statement.
ii) Bank statement. For those who self-employment, you need to bring last 3 month’s bank statement.
iii) Identification Card.
iv) Address proof. Usually we need to bring utility bill
v) Sale agreement from developer
6. Do not overlook, bank’s processing charges
– Bank or financial institution wouldn’t render all these preliminary services for free. Be mentally prepared for this overhead expense.
7. Get the Sanction letter and Celebrate
– Get the sanction letter and you can start planning to look at things that matter to you.
That’s all 7 steps to get home loan. Maybe some of steps is different based on your country formula but most of them is same.