Tips to Know Before Applying for a Home Loan Increased home ownership has lead to a plethora of real estate financing options available to customers. We have listed some of the simple methods to avail the home loans: 1. Do proper research ‐ The first thing is to do extensive research about the different type of loans that a bank or a financial institution can offer. Your top priority should be to do analysis about the rate of interest, tenure of loan and repayment options. 2. Maintain clean credit reports ‐ It is important to maintain a clean and clear credit report to avoid problems like approval of loan application. You should research about what options are there to handle any negative situation or when there is a substandard credit problem? 3. You need to deal smartly ‐ Many financial institutions are there to offer introductory rates to the novice loan borrowers by taking hidden charges. Initially the loans are proffered at low interest rate and later the hidden charges are disclosed. There is need to have a clear picture about the exact cost of the home loan, to keep yourself away from the fake promises or claims. Majority of the people avail loans even if they have other outstanding loans under their belt. The idea is to invest in a consolidated home loan that will not only help you to buy a dream home, but also helps to clear off the other outstanding credit card bills etc.
4. It’s better to spend less ‐ The thumb rule is spending less and saving more. This saving acts as a pipeline for the future time. This will help you get the dual benefits i.e. you can save in terms of cost and also protect yourself from the further debt trap.
5. Go for portable loans – It is better to opt for the portable loans that can be easily transferred within the property. Actually, it is a smart decision in which the loan can be easily transferred to another property, in a situation of home relocation. There are various schemes with different features that you need to cross check. While applying for a home loan for the first time, you should check whether the bank is backed by strong rapport or credibility. The best idea to get a phenomenal deal on the home loan is to understand the scheme and to stay away from the hidden charges. Source: https://medium.com/@rochesterneighborworks/tips‐to‐know‐before‐applying‐for‐a‐home‐ loan‐6818680823b