How to choose a home loan provider?

 

Planning to buy a luxury flat in Kochi? Check out flats in Kerala, at luxurykeralaflats.com before you buy your dream home. A home loan to back you up means you can even go slightly over the budget and go for a bigger house. After you have finalised the flat, you can start checking out home loan providers for your home loan. You should select the lender carefully so that you get a good deal in interest rates and the loan tenure.

Just check out this insight...

Loan amount and eligibility

Based on your occupation (salaried or self-employed), disposable income and number of dependents, your loan eligibility is calculated. Considering your monthly income and the value of the luxury flat in Kochi the loan amount will vary with each loan provider. Choose the one which will sanction nearly 80-85% of the price of the apartment. It is to be noted that a bigger loan would imply a smaller down payment and a higher EMI. 

Interest rate

Consider the rate of interest before you apply for a home loan for your flat in Kerala. The interest rate will impact the EMI and the total interest paid by you. Just compare the interest rates of different loan providers and choose the most competitive one. Also check if the rates are fixed or floating, as floating rates vary according to market conditions. Fixed rates of interest have higher value than the floating rates. 

Processing charges and prepayment

Many loan providers levy various charges on home loans like the processing fee, technical assessment and documentation fee etc. The processing fee for processing the loan comes to almost 0.25% - 2% of the loan amount. 

The prepayment of the loan for your flat in Kerala is set according to certain terms and conditions by loan providers. Settlement/foreclosing the outstanding amount, transferring the balance to another lender's account, prepaying a part or full amount of home loan, and other terms and conditions need to be clarified before finalising a loan lender by the borrowers. 

Responsiveness to change in rates

Home loan interest rates can differ according to policy changes by the Reserve Bank of India. It is always better to check out how quickly and by how much the loan lender changes its rate of interest in response to a cut in repo rate by the RBI. 

Turnaround time

Different home loan providers take different times to sanction and disburse home loans. If all your documents are in order, normally it can take around five to ten days to sanction a home loan. You also get post-disbursement services like getting regular account statements and interest certificates on time every year. Choose a home loan provider with a good record of after-sales service for your home loan.

You can compare diverse loan providers with these tips from luxurykeralaflats.com & choose what is best suited for you. Browse through luxurykeralaflats.com to check luxury flats in Kochi & finalise your dream home.