Tips on taking a Home Loan. Review on Taking a Home Loan

Taking Home Loan-

Here are the tips on taking a Home Loan-

(1)   Take home loan from a reputed nationalised bank/institution.

(2)   Before applying for a home loan, ask for the evaluation of your property first whom you want to purchase. By doing this you get to know the exact price of your property which you want to buy as banks or any other recognised financial institution evaluate property through their legal and financial experts on Government rates alone. From this you get to know whether the Seller is cheating you or not in terms of prices of the property.

From evaluation you will also get to know whether the property which you are planning to buy and against whom you are going to take a home loan, is legal or not. I means, is there any case filed with regard to this property, is there ant Title Suit case running regarding property and much more. In short, by evaluating the property from bank, which you are going to buy, you will get to know its authenticity.

(3)   After verification of property from bank, take Home Loan for a shorter period of time in order to save your money in the form of interest against loan and time too. Ask about the interest rate.

(4)   Ask from bank, whether the loan sanctioned to me is on Fixed or Floating rate?

(5)   Ask from bank about their Base rate or Prime lending rate. It is the minimum interest rate below which a bank never sanction a loan. Banks are commercial institutions, so they never provide loan to their customers on base rate. In order to earn more profit in terms of interest they provide loan above their base rate. If it is so, then insist bank officials to provide you home loan a little more as possible, above base rate.

(6)   Ask bank about their Processing fee, which a bank never reveal without asking. Even the customers don't know much about it. Say them not to take any processing fee from you as most of the bank now a days don't take it.

(7)   Ask bank is there any other hidden cost which you are not saying or discussing right now and will reveal later when my loan application will be in process.

(8)   Consult a lawyer first, if you are planning to take huge loan amount. Take his opinion.

(9)   Pay your EMI by cheque, not by automatic payment way from your account. Create a separate loan account for this.

(10)   Take loan in such a way that you get an income tax rebate.

(11)   Make Down Payment by cheque alone.

There can be much more but the important one are mentioned by me.

Thanks. Take care.