Millions of Indians today, especially in urban India, are considering Home Loans to purchase the property of their dreams. It is a significant tax-saving investment that generates long-term profits. However, many Home Loan applications turn into rejections because of a lack of knowledge about the right process. Besides, many of us don’t know much about the benefits which can be availed on Home.
Here is a comprehensive guide on the basics of Home Loans and the power of balance transfers.
What are Home Loans About?
Home Loans are a secured form of debt that can be taken to acquire your desired equitable mortgage.
To get one, you must first understand its application procedure.
Home Loan Application Procedure
Check your Eligibility and Keep your Documents Ready
The first step of applying for a Home Loan is checking your eligibility and preparing your documents. Your Home Loan eligibility depends on factors like age, nationality, income, employment stability, credit score, and required loan amount. You would also need to submit your identity, address, financial, employment, and age proof to apply for this loan. Besides this, you should be ready with all the property-related documents that will help you apply for the loan instantly.
Use Home Loan EMI Calculators
Home Loan EMI Calculators are a great financial tool that gives you an estimate of the monthly EMI (Equated Monthly Instalment) based on your loan amount, loan tenure, and the interest rate offered by the provider. By using the loan EMI calculator, you can change the figures to estimate the EMI amount which you can afford monthly according to your income and expenses.
Compare Different Home Loan Providers
Before you settle on a loan provider to avail Home Loan from, consider factors such as Housing Loan interest rates, loan amount, loan tenure, fees and charges (like stamp duty, stamp duty in up foreclosure fees/processing charges), consumer services, and reviews and ratings of different loan providers. Compare each lender’s loan offer and choose the one that aligns with your financial goals.
Follow the Right Procedure
Applying for an online Home Loan is a hassle-free process, which can be done with just a few clicks within minutes. You can submit the necessary documentation online, wait for the approval, and then enjoy a quick Home Loan disbursal amount, which will allow you to own your property within a few days.
Discovering the Power of Home Loan Balance Transfers
Home Loan balance transfers are extremely beneficial in saving money in the long run. If you can pay a lower interest rate on Home Loans at the beginning or middle of your Home Loan tenure, then it is best to balance transfer your loan to another provider.
Key features you need to consider while transferring Housing Loan balances are as follows:
Improvement in Credit Scores
If your credit score required for home loan has increased because of a good repayment history and timely payments of EMIs, then you are likely to be eligible for a lower interest rate on your margin money. If you get a good offer on debt consolidation, you must consider all pros and cons and go for it.
Better Earnings or Increasing Sources of Income
If you have additional sources of income and a more stable employment condition, you can get better offers on Home Loan balance transfers process.
Lower Rate of Interest
A low-interest rate is the first priority when choosing the balance transfer option. Even if you get a 1%-2% interest reduction offer from a financial institution, it means significant savings on Home Loans, which are generally available for longer tenures.
Lower Fees and Charges
Go for balance transfers if the new provider offers lower processing fees and almost negligible foreclosure charges. Such reduction in charges leads to ultimate savings in Home Loans.
Conclusion
Reading this guide will give you an overview of Housing Loans and co applicant meaning how loan balance transfers can help you. Home Loans today are the gateway to building one of the most important assets of your life, i.e., owning your own home.