While opting for a home loan, should I just choose the one offering me the lowest rate of interest? Is it a good way to choose the right home loan?
Even though it is good to choose a Home Loan that provides you with the lowest interest rate, you should consider other factors too. Considering every possible, decision-affecting factor is the key to a smooth, hassle-free journey to owning your dream home. There are numerous factors that can help you make the right decision when selecting a home loan provider.
Processing and Disbursal Speed – Dealing with a lender that rules out the possibility of any delays and is quick in processing the Home Loan application always proves beneficial in the long run. Normally, it takes 10-15 working days for banks to process an application, if everything is in order. Once approved, the lenders take additional 3-5 days for disbursing the amount of sanctioned loan. You can, of course, opt for paperless approval for Home Loans if you choose to apply for a loan with BankBazaar.
Processing Cost – Every lender charges a processing fee for processing your Home Loan. The lower the fees, the cheaper your Home Loan.
Eligibility – The internal lending criteria varies from one bank to another and it is on the basis of these criteria that a particular amount of Home Loan is approved for the borrower. The criteria might cover the borrower’s age, job profile (preferably salaried), employment stability, credit history and other such factors. You must check your eligibility before you apply for a Home Loan to avoid possible rejections. You must know that loan rejections can affect your Credit Score.
Repayment Terms – There are certain terms and conditions pertaining to the repayment of Home Loans. Potential borrowers must clarify the terms as regards settlement/foreclosing the outstanding amount, transferring the balance to another lender’s account, prepaying a part or full amount of Home Loans, and other such conditions, before finalizing a lender.
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