It’s every person’s dream to build a home when they are still young and enjoy living there with their family. Saving all your life to construct your house will take decades but with the help of a home loan, you can achieve your dream immediately and repay the sum in easy monthly instalments.
Mentioned below are a few of the important things that you should consider when choosing your home loan:
Interest Rate
Interest rate is compounded annually. What you should look at is the tenor for which you will get the loan, as you have the pay the interest till the end of the tenure.
Pre-payment or Part Payment Options
The home loan should favor you to make part or complete closure if required. In case, you get additional income or money through sale of an ancestral property, you can pay off your loan quickly.
Plan your Budget
The EMI should not exceed your monthly budget and the value/price of the home should meet your ability to pay back the loan. Going for too high an amount leads to unwarranted debt that you can avoid by being cautious.
When your CIBIL score is decent, you will be able to get better interest rates, more EMI options and also additional features the lender may offer to minimise your financial burden. Keep track of your existing and old loans, make sure they are all paid off in time to keep your credit score robust so that you can get the best home loan.
Reference Read: Aspects to Check Before Finalising any Home Loan Scheme
