Things To Keep In Mind When Applying For a Home Loan

  • Check your credit score: A good credit score allows you to get a loan. If interest is paid on time, you can negotiate a lower interest rate after a year with the bank manager. 

 

Take Registration Charges and Stamp Duty into consideration: The indirect tax on the sale of property, i.e. stamp duty, is around 5% depending on the state where the home is located, and the registration fee is 1% for the same. However, these additional fees can amount to more than ₹50,000, if not in lakhs. Take these values into consideration depending on the market price of your property when applying for a loan.

The flexibility provided by Lenders: When choosing a lender or financial institution for your home loan, make sure they are flexible enough to allow for momentary fluctuations in payments.

  • Make sure all documentation is in place: Most times, delays in the processing of loan applications happen because not enough documentation was provided, or the documentation which was provided is inapplicable. Make sure all documentation you are providing is up to date and is acceptable to the lender. 

 

Make sure the loan amount is bearable: The loan amount should, of course, be repayable, but at the same time, you should keep in mind that the longer you take to pay back the loan, it will get more expensive due to compound interest rates. Thus, calculate the most you can pay every month and make larger EMI payments.

  • Icon

    Points to remember

  • Icon

    To ensure you get a loan with ease, you should have a good credit score.

  • Icon

    The indirect tax on the sale of property, i.e. stamp duty, is around 5% depending on the state where the home is located, and the registration fee is 1% for the same

  • Icon

    The longer you take to pay back the loan, it will get more expensive due to compound interest rate.

Let us learn how to use the Loan money effectively!

Next Chapter