Guide To Take A Home Loan For Your Dream Home

Before taking any home loan, consider these points which will help you to get the best from your home loan.

1. DON’T BORROW MORE THAN YOU CAN REPAY

It’s very important to understand how much home loan you need for your new home and how much you can repay on the set tenure by the lending institution. It is always crucial to maintain a good credit score in your CIBIL records which indicates your financial stability.

In any loan track, it is very often seen people missing EMI payments and ending up paying fines or surplus amount to the lenders. But, this doesn’t stops here, once you miss any of the EMI payments, the lenders start analysing your credibility and ultimately it affects the Credit Score.

So, it is recommended please understand the present and future loan repayment capability of yourself and judge properly before taking a hefty home loan amount. This becomes a perfect strategy of saving lot of money and a measure to keep your CIBIL records positive for further loans and credit cards as and when required.

 2. KEEP TENURE AS SHORT AS POSSIBLE

It becomes an obvious choice for the all the home loan borrowers to avail a loan for a long period so that the EMI instalments remain low and can be easily managed over the long period of time. But, if you can opt for further simpler plans available with SBI home loan, HDFC home loan, Axis Bank home loan, LIC Housing Finance home loan etc., where they will give you Flexible EMI instalment options, more often referred as FLEXI Plan or similar. The loans are broadly divided into these simple to understand categories:

a. Home loan with delayed start of EMI payments
b. Home loan with increasing EMIs
c. Home loan with decreasing EMIs
d. Home loan with lump sum payment in under-construction property
e. Home loan with longer repayment tenure
f. Home loan with waiver of EMI

For some ready guidance one can check with HSBC Lump Sum Repayment Calculator online through this link: https://goo.gl/K6zmPX


CHOOSE THE RIGHT HOME BEFORE TAKING THE HOME LOAN, GET THE NEW HOME INSPECTED WITH HOME INSPECTION PROFESSIONALS.


 3. ENSURE TIMELY AND REGULAR REPAYMENT

To maintain a timely and regular home loan EMI repayment, one must understand the above options given in details, so that it becomes easier for the borrower to choose the right home loan plan and set the right strategies of repayment options based upon these simple home loan options offered by numerous banks in India:

a. Home loan with delayed start of EMI payments

After market research on numerous home loans, if one checks SBI’s Flexipay home loan where it gives an option to go for a moratorium period – of anywhere between 36 months and 60 months during which the borrower don’t need to pay any EMI but only the pre-EMI interest. As soon as the moratorium period is over the home loan EMI begins with an enhanced pre-agreed rate on upcoming years.

b. Home loan with increasing EMIs

This home loan is linked to the borrower’s monetary growth i.e. growth in income. This specific type of home loan are beneficial for young age borrowers whose incomes increases as they grow in their career over the loan period. This helps the borrower to avail higher loan compared to a normal housing loan.

c. Home loan with decreasing EMIs

Just in contrast, it is exact opposite of the above; this is ideally suitable for people who take home loan at an age of 30+ where their home loan repaying capability goes down with their age ahead.

d. Home loan with lump sum payment in under-construction property

This type of home loan is often beneficial for the borrowers. For e.g. on INR 60 lakh home loan of yours’, if the EMI is ‘x’ amount, by starting to pay the EMI, the total outstanding will stand reduced to about INR. 40 lakh by the time the property gets completed after 36 months. The new EMI will be lower than what you had paid over previous 36 months.

e. Home loan with longer repayment tenure

Lot of banks is offering these long repayment tenures for your home loans, like HDFC, Axis, Indiabulls Home Finance Ltd., LIC Housing Finance and ICICI. They will give you multiple options to extend repayment period up to 65-70 years of age up to loan amount of 70 Lakhs or more. This might help lot of borrowers of any age where 2 generations can take the responsibility of repaying the loans for their dream home of their family.

f. Home loan with waiver of EMI

Lot of bank offers exclusive home loan EMI waiver schemes. The offers normally works like, if you pay regular EMIs on time for 10 years period, they’ll waive off 6 months EMIs if the total home loan period is 20 years and the minimum home loan amount is INR.30 Lakhs or more.

 4. DON’T BORROW TO SPLURGE OR INVEST

Investments are always good but definitely with all sort of risk calculation need to be taken care of from beginning. Multiple options of investments are there in the market like Equities, Bonds, Mutual Funds, Real Estate etc. Real Estate being the most trusted ones till few years back where the rate of home loan interest was around 7% and the real estate industry booming with 20% growth. For last few years the real estate business has taken a complete shift of home loans costing around 10% and real estate cost is rising just by 5% max. So, it is no more an ideal investment these days that you invest on real estate for good return with borrowed capital from banks in the form of Home Loan.

SO, THINK BEFORE YOU INVEST WITH BORROWED CAPITAL!!!


CHECK YOUR HOME HEALTH WITH  PROFESSIONAL HOME INSPECTION COMPANY.


5. TAKE INSURANCE WITH BIG-TICKET LOANS

Firstly, let us give you this link to calculate a tentative amount on how much insurance is required when you plan for a home loan: https://goo.gl/NQRfKx

This is really important if you plan for a big home loan, you must also plan for an insurance to cover the same or your family will be in spot to pay the EMIs without any safety on the same. Don’t skip this step as for many reason it might happen that the cash flow get stranded for a specific time or for a prolong time for the borrower, where this insurance will cover up the gap for those periods to incur substantial loses against the home loan for your dream home.

BIG TICKET LOANS MUST BE ALWAYS COVERED WITH INSURANCE!!!

6. CHOOSE YOUR LENDER CAREFULLY – SUBSTITUTE HIGH COST LOANS

Always keep on your home loan research both before and after taking the home loan. As it is often seen that lot of banks are competing on lowering their interest and EMIs on home loans, but now the competition doesn’t remain on the same ground rather they are trying to add-on values on the home loan repayment options with regular home loan schemes with flexible repayment options.  Even if, you have already taken a loan from a specific bank, if you find a better deal you can have the loan portability schemes from numerous banks with easy options of changeover. All you need to keep a constant eye on the changing rates and offers in the home loan market so that if you get better options and easy transfer of the balance home loan from your existing lender to your next lender for better deals and advantages.

7. UNDERSTAND THE FINE PRINT

There are lot of Home Loan options waiting for you with some mind boggling lowest interest offers, be it SBI Home Loan, HDFC Home Loan, DHFL Home Loan, PNB Housing Finance, LIC Housing Finance, Diwan Housing Finance or Indiabulls Home Finance Ltd. it’s your foremost job to read and know every possible opportunities and loopholes in this biggest decision of taking a home loan for your family. So, decide wisely what all can affect you on multiple default and changing rule situation due to different socio-economic conditions also. During all the discussion with different lending institutes, never forget to note the loan getting documents and rules, repayment procedures and defaulter rules in repayment procedures. You must know how a default in a single EMI can affect the total home loan procedure or EMI payment structure.

8. KEEP FAMILY IN LOOP ABOUT LOAN

It’s a long term loan and it is always better to involve all your near and dear ones to discuss thoroughly on the home loan, as it is for the whole family, everyone must know about the same and can help you to take the right decisions.

9. HOME INSPECTION

Last but not the least – know “How Healthy & Safe your Home is” – get a professional home inspection done. Understand, how healthy and perfect is your home, whether it is upto the mark in terms of all (damp, electrical, material type, masonry, plumbing, civil, door, window, etc.) conditions or not. Get a Pre-inspected home or get a Professional Home Inspection done on the home before taking the home loan. Get a complete healthy and safety checkup of your home (new or old). For more information on Professional Home Inspection visit www.macj-abuyerschoice.com.

GET YOUR HOME INSPECTED!!!

Write a Comment

Your email address will not be published. Required fields are marked *