10 Golden Rules To Consider When Taking A Home Loan
Having a home that one can call their own is a dream for most of us. But with surging property prices, it gets more challenging to afford a house with one's savings. Home loans are an excellent way to achieve this dream with a stable financial position. Now you can find various options with a single click.
When a person decides to take a home loan, they are bombarded with several pieces of advice and suggestions. Be it their colleague or a relative, everyone has something to add to this critical financial decision. However, the loan industry has gone through various innovations. Banks like Standard Chartered have plans such as the Home saver loan. Here are ten golden rules you must follow to find the best fit.
1 - Eligibility
The first thing that you will go through is the eligibility assessment for taking a home loan. It is decided based on your repaying capacity according to your income level. Hence, be ready with the necessary documentation such as salary slips, income tax returns for a hassle-free process.
2 - Types of Home Loans
Home loans come in various forms, such as fixed-rate loans, combination loans, home saver loans, or floating rate loans. It all revolves around the change in interest rates. You can find the best home loan at Standard Chartered as per your preference at affordable interest rates.
3 - Amount
Generally, lenders offer 75 to 90 percent of the amount based on the cost of the property. The loan amount can be increased if there is a co-applicant with additional income. A co-applicant can be your spouse, parent, or child.
4 - Home Loan Cost
The foremost thing to consider when taking a home loan is its cost. It not only includes interest payments but also involves prepayment penalties, processing fees, administration charges, etc. Look for a transparent lender with no hidden costs involved. Standard Chartered Bank can be a great option in this regard. Their home loan costs are transparent and affordable.
5 - EMIs
EMI is an amount that you pay every month to the lender. It is a culmination of both interest and principal payment. Home loans also have a concept of pre-EMI wherein only interest has to be paid for properties that are under construction.
6 - Duration
The maximum tenure of a home loan is usually 30 years based on the customer's eligibility. Go for a loan with a longer term to ease down the burden of EMIs. In contrast, a shorter tenure means relatively less payment of interest to the lender in the long run.
7 - Timely Repayments
CIBIL score represents an individual's credit history that lenders use for ascertaining borrowing credibility. Any late payment or penalty can affect the CIBIL score and affect future borrowing decisions. Late repayments can make it challenging to take future loans.
8 - Insurance
Uncertainty can strike at any time and leave an individual incapacitated to pay the loan. To save your family from the burden of repayment, always take loan insurance. It covers significant accidents, temporary or permanent disability, job loss, and even death.
Always choose the best lenders for professional service
It’s not enough to decide on a particular home loan and opt for it. The entire application process involves a lot of nuances such as research, precise application, visits to branches, and crucial paperwork. Completing all these tasks perfectly is the key to getting the loan approved. Rather than doing all by yourself, associating with a professional and trusted expert like Standard Chartered would be the right thing to do. The professionals working here will surely take up the onus of the entire proceedings related to home loan application. As a result, multiple visits to branches, official hassles, critical paperwork, and other documentations would be done in an error-free and precise way. They will make sure the processing time is reduced and you don’t have to lose your mind over fulfilling the formalities.
9 - Compare
You may be interested in availing the first home loan plan you see around you. Just like, buying your own home is an important decision, a home loan is too. Always be on the lookout for the best fit by comparing all the options available in the market. When you associate with a brand like SCB, the comparison part becomes quite easy. Depending on your requirements and repayment capabilities, they will present the best options before you.
10 - Lender services
Just like research and market knowledge is important for cracking the best home loan deal, it is also imperative to ensure that there are minimal hard work on your part. One of the golden rules is to get in touch with proficient and professional lenders like Standard Chartered. With world-class services and dedicated RM for every client, they can guide you throughout the loan approval process. Whether it’s assessing your credit score, determining the loan amount, or ensuring that you get maximum coverage, they will execute all that’s necessary. Learn more about Standard Chartered Bank Home saver loans.
Conclusion
Buying a home is one of the most emotionally satisfying decisions. To sail through the loan tenure smoothly, keep these factors in mind and assess your requirement, capability, and market factors. Don’t forget to associate with a trusted, reputed, and seasoned lender like SCB and avail a home loan that suits your needs and helps you in affording your dream home.
