HOME LOAN? FEW FACTORS TO BE CONSIDERED.



home loan 

Everyone dreams to have their own house. It's a financial asset that will make you proud of yourself. Your own private place on this big earth. Owing your own house gives great joy. Hence, you need to consider the following key factors for a smooth process in purchasing a house:

1.      Research: Compare alternative banks with their loan rates and interest rates. Check various charges such as processing fee, administrative charges and so on. Don't just go for which offers the lower rate but which has a good prospect in all the checks.

2.      Ability: Check your eligibility for loan you can borrow. Make a list of all your expenses and see if you have money left to pay for your EMI. Then go ahead for the loan application.

3.      Credit Score: Do not neglect the way you handle your credit card. Higher your score which is >750 the lower the interest rate for the loan you apply in turn lower payments.

4.      Tenure: Consider the number of years your willing to have a loan. Keep in mind your per annul income and take the time-period which is right to pay back the loan. Thereby, you're not just dragging the loan for a longer period and the interest rate will not go higher.

5.       Rates: Check if you would like to follow a fixed rate or a floating rate for the home loan. Floating rate can vary by two percent. So do not just take what is offered but compare and choose wisely. 

6.      Documentation: Do check the terms and conditions for the interest rate, repayment, down payment, administration fee and the term period before you sign the application. Keep a copy safe and do rectify any errors there and then. Never hurry this process.

7.      Balance Transfer:  In future you have an option to transfer your current loan to a different bank if the interest rate is too high. This will lower your repayment amount. You can apply for this by checking the online procedure and making necessary fee payments.

TIP: Download PODBEAN app on your phone, you can listen to plenty podcasts for free and increase your knowledge. Make it a habit to listen to at least one podcast each day as reading can be hard but not listening to a podcast.
 
Read this book "Intelligent Assest Allocator by William Bernstein" to learn more. 



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