There is no rocket science in applying for a Home Loan. It is simple! Whenever you think you are professionally stable to purchase your dream house, you can take the support of a Home Loan.
When you will apply for a Home Loan, the most important thing that you need to focus upon will be the Home Loan interest rate. On the basis of interest rate, your EMI will be set that you need to pay every month to repay the loan.
There are two types of interest rate- fixed and floating. Applicants get confused while selecting the type of interest rate. In fixed rate of interest, applicants need to pay a fixed EMI amount every month to the lender. But, in case of floating interest rate, the EMI amount keeps on changing as per bank and RBI policies. This is because the floating rate are market dependent. So, sometimes the rate of interest increases and sometimes it decreases.
If you apply for a fixed rate of interest, you will always get the opportunity to shift to floating rate anytime by paying some processing fee. In fixed rate you will suffer when market rate will go down and in floating rate you will actually bear these fluctuations.