How to choose the right home loan lender: Here are some factors to consider
Owning a home is an aspiration for many, and a home loan is a popular financing option that you may rely on to fulfil your dream. After all, purchasing a home requires a hefty investment. By taking a home loan, you can ease your financial burden since it doesn’t require you to pay a lump sum from your savings or investments. Instead, you can get the financing you need and make monthly payments to service your loan.
However, home loans are long-term secured loans requiring a longer financial commitment. Defaulting on repayment can result in the lender seizing your home to recover the dues. This makes it pertinent to ensure that you choose the right lender so you can repay comfortably. By watching out for a few important factors you can select the ideal home loan provider. Read on to know what they are and make the right choice.
Assess the maximum loan amount offered
The loan amount that lenders offer depends on a few factors besides your eligibility. This includes the LTV (Loan-to-Value) ratio, which refers to the amount you can get against the value of your property. While there are standard guidelines for this ratio, different lenders have different ratios, and it can go up to 90%. A higher loan amount equals a smaller down payment amount. So, check the LTVs of various lenders to ensure you get the funding you need.
Consider the lender’s reputation
Home loans require collateral, and your lender will need to store your original property documents securely. So, choosing a reliable and trustworthy lender is important. Moreover, home loans are usually for the long term, where the tenure can go up to 30 years. This makes it more likely that you would have to interact with the lender at various times during the course of repayment. A lender with good customer service ensures you get the support you need.
So, look at the lender’s website, see the customer reviews, and talk to people around you who have transacted with the lender. You can also consider applying with a lender you have a previous relationship with. This can not only help you secure funding easily and even affordably, but also come in handy when you need assistance or want to restructure your repayment.
Check the interest rates and other charges
In terms of interest rates, check the different types of rates offered and how the lender responds to the changes in policy by the RBI. This will also allow you to choose the right interest rate and find lenders offering the most affordable option. While your finances play a significant role in making repayment easy, the lender plays a vital role in this process too. This is because the terms and conditions levied by the lender ultimately affect your borrowing and repayment experience.
These include prepayment charges, processing fees, bounce charges and other fees and terms. Read through the fine print to ensure you choose a lender who believes in transparency. This way, you will not be taken by surprise during repayment.
Look at additional offers and services
In addition to offering a loan, some lenders offer insurance. Through it, you can keep your home and finances protected. Some lenders also offer digital services where you can manage your loan online from anywhere. This enables you to stay up to date with your loan no matter where you are. Consider all such value-added facilities, such as availability of doorstep services, top-up loans and more to enable you to have a stress-free experience. Along with the above factors, you must also consider your finances to make the right choice. Prioritise your current and future finances to reach a loan amount with a manageable repayment schedule. Doing this is easy on the Bajaj Markets app.
Choose from among top lenders offering affordable home loan options on this app. Use digital tools like the EMI and eligibility calculators to be more informed and apply online in just a few steps. Download the app from the Play Store or App Store and take the first step towards getting your dream home!
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