Guidelines to Choose the Right Loan

1. Go For Low EMIs

Shop for Housing Finance Companies that offer you loans with low interest rates. Do not stop with one or two enquiries. The best offer may yet to come, so approach as many sources as you can. Compare the offers and consider what will best suit your requirements. Ensure that the loan tenure does not extend for a long period as the interest rates might hike any time & put you in jeopardy. It is advisable that your EMI does not cross more than 40% of your net income. It will help you run your finances more smoothly in spite of the EMI payments.

2. Enquire Regarding The Fees & Hidden Charges

Ensure that you are kept on loop on all the fees & charges of the respective Housing Finance Company when you apply for a home loan. Enquire on the processing fees, valuation fees, administration charges, pre-payment charges, legal charges & for any other hidden costs. Never yield when the representative says “We will refund you.” Bear in mind, you won’t get your money back on additional fees & charges. So, do not waste your time with fake promises. If they commit on money return, do not succumb to verbal statements, get everything in written.

3. Obtain A Pre-Approval Letter

A pre-approval letter carries a lot of weightage for a borrower. It simply means that you are serious about borrowing a home loan. Your papers, credits, assets & employment status will be thoroughly scrutinized and the letter will fine point that you are a worthy candidate for a home loan. But this does not necessarily mean that you pass for loan approval. On the other hand it will help to influence the lender to accept your loan application. With validated eligibility status, your letter adds trust & confidence to the lender & increases your loan availing chances.

4. Never Shy Away From Bargaining

When it comes to the negotiation stage, most of the borrowers are hesitant to make the progress & do not know how to proceed to get the desired results. After all, what is wrong in bargaining? If at the end you get your money’s worth, then that is all you want right? Many loaners are hesitant to mention dependable references. Do not shy away from providing such details as it will only benefit you. Most of the banks are quite willing & flexible to cut off the rates when there is a genuine reason for the loaner. When there is a loophole that permits you to claim a cheap loan for better rates, what stops you from claiming something that is rightly yours?

5. Watch Out For Greedy Lenders

Step away from representatives who approaches you with unreal offers. This is just to lure you into the ring and later things may not seem as bright & promising as it was in the beginning. Never go astray from the legal policies & ensure that you abide by them at all costs. There are representatives who might ask you to include fictitious data in your application to get it moved & approved quickly. SAY NO! Have no dealings with such persons or financing institutions. It is better to affiliate with a firm that shares what is practically possible for your eligibility than the one that draws you with too good to be true offers.

Do Not Give Room For Chances. Your Future Is Too Precious To Be Risked!