Thursday, March 27, 2014

Home Loans – Dos and Don’ts

In the last decade there has been a significant rise in the number of new financial institutions that have come up in India. In such circumstance availing home loans has become easier than ever before. With the easy availability of funds, the mindset of the people has also undergone a change. They don’t rely on their savings to buy or build home; instead they rely on the financial institutions for home loans.

Getting a home loan to buy your dream home is one of the most important decisions you would take in your life and you need to put a serious thought behind it. There are different things that you need to consider, the following dos and don’ts will greatly help you:

It is important that you pay your EMIs on time; any delay in the repayment would have its repercussion on your overall credit rating. If you have a bad credit score it would affect your future financial transactions.

Make a list of the dues you owe and prioritize the payoff. Make sure that you allocate sufficient funds to pay off your loan installments and credit card payments.

If you have more than one loan, payoff the larger mortgages first. This would help you replace the high  interest rate debt with home loans of lower interest rate.  Also, you may get tax deduction on the interest  amount.

It is best advised to start saving well before you avail home loan. This would significantly help you make a larger down payment upfront and reduce the burden of home loan repayment later on.

The amount of loan you get depends on the evaluation of the property appraiser. It is therefore essential that you keep your home clean and carry out some basic repairing work. This would boost up the loan amount.

Don’t spend extravagantly on buying anything other than absolutely necessary items for a few months after availing home loan. You must try to repay the loan as soon as you can.

Don’t forget that home loan is a huge responsibility that you need to oblige. Any delinquency on the repayment would affect your credit rating. Not to mention your credit amount may increase higher than you would image.

Don’t apply for a bigger home loan than your actually need.

Don’t rush into singing any loan offer. Take t your time to consider the various options and choose the one that best suits your needs.

If you are availing home loan form Indiabulls Housing Finance limited, you need not be worried about anything. We have expert executives who would work closely with you though out the process and ensure that you get the best home loan deal. 

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