BANGALORE: If you are planning to apply for a home loan, then you should know that there are many important things that you need to consider. Not only is it important to get the home loan from a genuine and reputable lender, but it is also advisable that you apply for a loan amount which will not burden your current financial situation. Applying for a home loan when the market is not favorable can also land you in financial trouble.

There are many such factors related to home loans, which you should be completely aware of. Here are some of the vital things you should know before applying for a home loan:

1. Understand Home Loans

Before availing a home loan, understand how it will affect your income. Know about your points and PMI. Understand what kind of loan are you availing, whether it is an interest-only loan, fixed-rate mortgage, or adjustable-rate mortgage.

Know if you can avail a FHA loan. Once you know which type of home loan you can apply for, you will be able to plan your finances accordingly.