Purchasing a new home is all about home loans. It is really difficult to invest everything you have in your bank account for the sake of purchasing a new house. So, people end up purchasing home loans from a reputed home loan finance company to get the task covered with ease. Now the biggest concern is with the loans that you care to choose. The market has so many home loans and making the right choice is difficult. Not anymore when you have gone through all the home loans, check out the features, and have selected the best one among the lot.
Things to check out while comparing loans:
There are certain points for you to consider while you are comparing home loans and finalizing making the right score. Going through the points will serve you right.
Whether floating or fixed one
Whenever anyone is aiming for a loan with an interest rate from home loan companies, be sure to check if that rate is a floating one or a fixed rate. The fixed loan rate comes with an interest amount, which remains unchanged through the entire loan period. However, if you plan to go for the floating one, then the interest rate is associated with PLR. So, if the rate hikes up, then the bank will extend the loan period without even touching the EMI and then reverse only when the rate reduces. But, you should remember that fixed loans are completely fixed and banks might change the rate of interest at discretion.
Checking out on processing fees
Before sanctioning loans, some documents are to be submitted. It is mandatory to verify those documents and then up processing. These plans comprise charges, which are called processing chargers. These chargers are well dependent on the rules of banks and might vary within the same institution, based on the loan amount. It is dependent on the loan amount.
Going for the mortgage deed charges
It is a known fact that home loans are massive expenditures and might give some weightage while choosing the provider. For example, interest rates are subject to vary from one institution to another. So, even if you come across a variation of around 0.1% between two banks on a loan amount of around 50, 00,000 rupees, then the actual difference will be that of 5000 rupees.
Some banks might not even have mortgage deed charges. But, you can rest assured that those banks will have at least some kinds of fine prints or even some higher charges anywhere else so do not just get lured by any of the promises made around here.
Dealing with the pre-closure charges
Even though once any person takes a loan, that person is sure to get burden off whenever any opportunity comes. It might sound very easy, but in reality, it is not as most of the banking institutions will levy pre-closure charges or which need to be corrected in past. As per the recent stages, RBI mainly stopped the financial institutions from charging any such pre-closure penalty on any of the floating rate-based interest loans. So, in case you have already made plans to have a loan, you must check with the bank on the status of the present pre-closure charges.
Checking out on the legal fees
When planning to purchase a house, the applicant needs to take some of the big decisions over here. Sanctioning any form of home equity loan is also a major decision for any of the institutions over here. They will be the ones to check the legal status of the said property first for which, they will be working on sanctioning the said loan. It is always vital to ensure that the property does not fall under the disputed category and has all the clearances too. For that, they are the ones to hire some lawyers and the charges will then get removed from the said customer.
But, then you have some of the major housing projects by some builders in every town, which are approved well by banks. So, if you are making plans to purchase a house in such an approved project, then you are saving a great deal of money by avoiding legal fees right from the first initial stages as well.