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Checklist before applying for a Home Loan

IndianMoney.com Research Team | Updated On Saturday, May 05,2018, 05:44 PM

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Checklist before applying for a Home Loan

 

 

 

  • Check your eligibility criteria and the interest rate charged on the home loan
  • Maintain a good credit score with CIBIL in order to get the home loan sanctioned as well as a lower interest rate
  • There is no prepayment penalty on the floating rate home loan
  • Banks do not levy foreclosure charges on floating rate loans
  • Banks charge around 0.5% -1% of the total home loan amount applied for as a processing fee. This is a non refundable amount and is not returned in case the home loan is not sanctioned.
  • The bank charges a prepayment penalty which is basically 1-2% of the outstanding loan amount if the fixed interest rate home loan is prepaid
  • If your bank has reduced rates for new borrowers and you an existing borrower with a high credit score are charged a higher rate you can approach the bank using the balance transfer as a bargaining chip in order to secure a lower rate from the bank.
  • Banks conduct a legal check on your documents namely the title deed, the sale deed as well as the encumbrance certificate to validate their authenticity and make sure the home/land does not have any pending dues associated with it.
  • Have your home/apartment constructed by a reputed builder/developer as they are well versed with the banks legal and due diligence processes which makes a home loan easier to avail.

 

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IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

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