The next decision that an individual needs to make is to choose between floating and fixed interest rate on home loan, which is largely based on one’s personal preference and knowledge about the both. However, the floating rate home loans are available for anywhere between 11.5-13%.
Also, it might not be necessary that the first scheme being presented by a bank employee would be the best for an individual.
Hence, always ask questions and enquire about the various schemes available with the bank, and then make the final call. Repay all outstanding loans:
A good report card always helps.
It is highly advised by bankers that before going to purchase any bank loan, an individual should repay all the other pending outstanding loans. Any loan taken by an individual like car loans or personal loans, taken on any bank, needs to be paid up to date. This adds to the ability to repay of the individual and the lending institution takes a greater interest in issuing a home loan. Also, these days, any bounced cheque of any late payment, is not missed by banks. Hence, its important to be thorough with the repayments. When in need go for a joint loan:
If one spouse’s income comes short of the required amount set by the bank to issue a loan, then several banks and HFCs have come up with a joint loan option. This option guarantees a loan for both the husband and wife earning a combined income of Rs 1 lakh per month. The choice for a greater loan is available with either husband or wife earning Rs 60,000 per month.
These are simple to follow tips, and can go a long way in increasing the home loan eligibility of an individual. So, buckle up and get ready to purchase your home loan smartly.