How to choose a bank for a home loan?
October 3, 2020|Posted in: home
Having plans to buy an Apartment? You can now check out flats for sale in Kerala at luxurykeralaflats.com & buy your dream home. With a home loan in hand you can even go slightly over the budget and go for a bigger house. Now that you have finalised the flat, you may want to identify a bank for your home loan. Select the lender carefully so that you get a good deal throughout the loan tenure.
Just read on to get an insight…
Loan amount and eligibility
Loan eligibility is based on your occupation (salaried or self-employed), disposable income and number of dependents. Depending on your monthly income and the value of the flats for sale in Kochi, the loan amount will vary from bank to bank. Choose the bank which will sanction nearly 80-85% of the property value but take note that a bigger loan would imply a smaller down payment and a higher EMI.
Interest rate
Before applying for a home loan for your flat, the rate of interest should be considered. The interest rate will influence the EMI and the total interest paid by you. You should compare the interest rates of loans of different banks and choose the most competitive one. You should also check if the rates are fixed or floating. Floating rates vary according to market conditions. Fixed rates of interest are higher than the floating rates.
Processing charges and prepayment
Banks levy various charges on home loans like the processing fee, technical assessment and documentation fee etc. The processing fee is deducted by banks for processing the loan. Almost 0.25%-2% of the loan amount is charged as processing fee.
The prepayment of the loan for your flats in Kerala is set by lenders according to certain terms and conditions. Terms related to settlement/foreclosing the outstanding amount, transferring the balance to another lender’s account, prepaying a part or full amount of home loan, and other things should be clarified by the borrowers before finalizing a lender.
Responsiveness to change in rates
Home loan interest rates differ as per policy changes by the Reserve Bank of India. Check out how quickly and by how much the lender changes its rate of interest in response to a cut in repo rate by the RBI.
Turnaround time
Different banks take different times to sanction and disburse home loans. Presuming that all documents are in order, normally banks take around five days to sanction a home loan. Also, there are post-disbursement services like getting regular account statements and interest certificates on time every year. Choose a bank with a good record of after-sales service for your home loan.
After comparing banks with these tips on how to choose a bank for a home loan from luxurykeralaflats.com, you can try to choose what is best suited for you. Browse through luxurykeralaflats.com to view flats for sale in Kerala & finalise your dream home.
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