Home Loan – Tips you Need to Consider
With the economy ‘shining’ and salaries heading northwards, individuals can actually find their dream of a big house in a posh locality come true.
Today’s youth are hard working and career driven and are not ready to compromise on the quality of their dream house for a few bucks. There are a multitude of home loan banks in India to choose from. The home loan industry has never looked more lucrative with real estate experiencing a boom, prices are heading upwards. Housing finance companies (HFCs) are providing platter full of advantages to woo the borrower with value added services and flexible products.
To find cheap home loans in India, there is an array of possibilities. Individuals can borrow from bank as home loans. Various housing finance companies (HFC) provide personal loans. Another option is loan against property (LAP) – a loan given against the mortgage of property.
Before taking a loan, there is some homework you need to do:
Five steps in choosing the right loan
The current housing loan market requires proper research before opting for a loan. One should not get carried away by tricky advertisements. Rather than banging head with terms like special interest rates for fixed tenure, hidden terms and conditions etc its better to opt for the bank that offers the lowest EMI (equated monthly installments).
1. Gather data on interest rates
It is a wise proposition to get interest rate information from more than one source and compare the offers. A long term loan will mean lower EMI but probably a higher interest rate and result in paying more for the house.
2. Enquire fees
The processing fees, administration charges and the quantum of loan should be discussed properly. It is better to have a written statement of all fees connected to the loan from the lending bank itself.
3. Pre-approval letter
Sometimes banks issues a pre-approval letter agreeing to finance a certain amount. This gives a significant weight and sellers deal seriously. One can expect a modest price range and negotiate a better deal. This is more important if one is taking bank loans for commercial properties.
4. Negotiate loan
Most loaners will bring down their charges for customers with a dependable reference, so do not be shy about bargaining. A bargain deal will easily fetch a home loan at around 0.25-0.5% lower than official rates.
5. Avoid greedy lending
Do not deal with person who asks you to include fictitious data on your home loan application to get quick approval. Also do not get pressured into borrowing additional finance than needed.
Aditya Jaiswal
http://www.articlesbase.com/loans-articles/home-loan-tips-you-need-to-consider-96549.html
need tips for first time home buyer w/ slight twist?
Hi, my hubby and I are planning to buy our own place. He has been working for 4 years now. We have a good credit rating as we always pay in time. We have not use the money much since we were living under his parents’ roof. Our budget for the new home is in the range of 100-220k and no more. We finally found this good condo at the price of 210k and my agent said it can be lower since it has quite a lot competition and it has been in the market too long.
The twist is that my hubby just got laid off. So I am wondering now, what should we do, Will the bank approve us for a 100k when hubby just got fired. Or will the bank will still consider us loan if hubby still have stable income from stock.
40% haircut, is that mean if I can pay 40%down the bank will not see anything else such as employlment and etc and just approve the mortgage?
Unless you can be approved on your own, you will not get the loan with a recent lay off. Stock income…especially in this market…is not at all stable.
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no as they will give the stock portfolio a "40% haircut" in value. Plus he must be working so he can properly service the note as the market is up then down and dividends may not be declared on any thing he owns
I am a mortgage banker in TN
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They will look at your CURRENT income when deciding on what you will qualify for. Him being laid off, will DEFINATELY affect you one way or another.
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This may be a blessing in disguise. In many parts of the country a condo is a very bad investment. The facts your agent told you indicate you are in one of those areas. Find a single family dwelling in a nice neighborhood with good schools for the best place to buy.,
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The loan will have to go in your name only unless he can find a new job in the same line of work quickly.
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A 40% haircut in the stock income means that if he is getting $500 per month in income from stocks, the lender will cut that by 40% and only look at it as $300 per month income.
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