Most of the borrowers in the country take a home loan to fulfill their dream of purchasing an own house. However, getting a home loan has become more convenient and easier these days but there are certain other factors related to it that a borrower should keep check on before they “APPLY FOR HOME LOAN“.

These factors are very significant to keep in mind while availing a home loan as it is a long term financial commitment where you have to repay the EMIs for years till you pay the entire loan amount along its interest. In this blog post, we have mentioned certain points about which you should ask yourself prior to applying for a home loan:

Do You Have Enough Money For Down Payment?
Although you are getting a financial assistance from lender to buy a home for you but still you need to make the down payment on your own. As per RBI guidelines, lender can approve maximum of 70-80% of the property cost through loan and rest 20-30% of the amount has to be paid by borrower from his/her own pocket.

Nowadays, the price of property is skyrocketing so paying a 20% from your own is not easy sometimes. Therefore, before you avail a home loan, it is good to analyze your finances to know whether you will be able to pay the down payment or not. Moreover, one must look for other expenses also such as processing fee, stamp duty and registration fees etc.

Do You Have Savings For Other Financial Emergencies?
Before you proceed further with your home loan application, first thing to analyze is your finances for down payment but alongside you must also be aware for saving some funds for other financial emergencies in future. As per saying, life is full of uncertainties therefore investing all your savings in down payment is not a good idea.

Is Negotiation Allowed?
Whether you choose any lender for your home loan, always keep in mind that you can negotiate about the loan amount, rate of interest as well as processing fees with lender. if you having a good CIBIL score and low credit utilization ratio then you are eligible for negotiation. Remember that a high credit score gives you the power of bargaining.

Do You Know Estimated EMI?
EMI is known for equated monthly installment and it is one of the most significant factors that decide your borrowing cost. It is the fixed amount that you will be paying until you repay the entire loan amount with interest rate. Hence, knowing your estimated monthly installment will help you to analyze your affordability. One can use free EMI calculator on various lending platforms to know their estimated EMI.

Hence, knowing about such things and to make your borrowing easier, you can “APPLY FOR HOME LOAN ONLINE“ by filling out your home loan application at the online lending platform of specific lending institution. Just keep an eye upon all the above mentioned points before making any final decision about your home loan.