Home Loan Tips for Borrowers


Bangalore: Everybody dreams of buying a house, but many do not have enough funds in the saving account to make such an expensive purchase. This leaves only one option that is asking for loan from a housing finance company. But the most important question arises ‘how to choose the best home loan lender?’ As a home loan generally consists of large sum and is also a long term scheme, you should be very cautious before choosing one. If you want to escape the hassles that are linked to avail a loan; then carefully select your home loan. Here is a checklist for you before buying a home loan.

1. Choosing the Lender

The first factor which should be kept in mind before opting for a home loan is to select the bank or the housing finance company (HFC). As home loan is a long term commitment, it is very important to take some time to select the lender. To examine a lender, you can crosscheck with its borrowers.

Professionals who have salary account in a particular bank can check with the bank's loan rates. Also there are some banks which offer lower rate for salaried professionals. Check for the processing fees and other charges for the loan. If you can then go for the longest possible tenure as it will reduce your EMI burden.