Which Factors To Consider When Choosing Housing Finance?

Largely, borrowers obtain a home loan for a duration of 20 to 30 years. For most of the working class as well as the SME businessmen, this constitutes a major part of their life. Therefore, it is absolutely essential to evaluate all the relevant factors while choosing the best housing loan in India . There are several features that affect this decision. Here are the most important aspects that one needs to bear in mind when making a choice:

• Interest rate: This is by far the most important factor while opting for housing finance. Whether you choose a floating rate, fixed rate or hybrid structure, it affects your EMIs considerably. This is the most important decision for a borrower. Hence, you must remember to negotiate the interest rate and ensure that all the agreed factors are written down in the loan application.

• Purpose: Though most people obtain a home loan for a house that they wish to buy and live in, businessmen or investors take home loans for properties that they want to invest in. The reason for purchasing property greatly affects the time available, the interest rate, the home loan tenure, the flexibility of payments and the speed of the housing loan application process.

• Home Loan Process: From the minute you enter a housing finance company with your application or to submit the documents required for your loan, or visit their website to check the home loan eligibility, it could affect the several dimensions of your home loan process including the interest rate, processing charges, repayment support, and a lot more.

• Housing finance companies in India: There are several housing finance organizations that provide home loans. However, opting for the right organization and the right product is extremely important. The interest rate, home loan process, repayment support and other services, vary considerably from company to company. In other words, the key factors of a home loan are dependent on the bank/financial institution where you choose to avail the facility from. Feel free to study more about the organization, research on the potential value and the service standards provided by them to their borrowers before making your choice.

It is imperative to anticipate your financial life well enough to understand the real challenges in the repayment structure and monthly cash flow. The fine print has a set of clauses that could prohibit a borrower from a lot of financial choices. Hence, it is important to read the document carefully, ask for the necessary changes and seek advice from home loan experts that you trust.

Avail Housing Finance Today For Your Dream Home Tomorrow

To own your dream home is a privilege that everyone desires in their life. Home loans in India provide almost 80 to 85% of the market value of the home that you decide to purchase. In other words, if you can arrange 15 to 20% of the total cost of the property and qualify for the home loan, you will get the remaining finance required to possess your own property.

Whether you have a government job or a private job or have your own business, the option of housing finance is available to you. A housing finance company in India would provide you with the required funds once you duly complete the loan process and provide all the essential documents. Though the process to secure home loans is perceived as tedious and exhausting, it isn’t so anymore due to the online housing finance facilities that most banks/financial institutions offer today. From filling a loan application to securing the house loan, several processes can be completed from the comfort of your own home or office. Housing finance in India has been simplified with several easy-to-follow online steps, making it easier than ever before.

The housing finance company of your choice strives to offer a home loan that would optimize the core value by minimizing the delay, increasing the ease of availing the facility and providing you with just the right interest rate. Though it may not be as easy for nationalized banks, private companies try their best to provide customers with unmatched facility and service.

With simplified online tools such as the EMI calculator, the eligibility calculator, the stamp duty calculator and other detailed information about eligibility, repayment and processing fees, most home loan borrowers can make a well thought out decision and proceed to finalize their home loan.

You can also visit the nearest branch of a reputed housing finance company and submit your documents or have the their representative come and pick it up from your house, instead of visiting a location far away from your home or office. The convenience of making the repayment via electronic clearing service, which is known as ECS, is also available along with traditional post dated cheques on your salary or saving account.

The advent of technology has enabled housing finance companies to reduce our efforts and speed up the housing finance approval process. Hence, it is the best time to avail a loan and buy your dream home in a hassle-free and tech-savvy manner.

What Should An Ideal Housing Finance Company Do For You?

Finding the right housing finance company is perhaps one of the most important aspects during the selection of your home loan. Any individual, who has been trying to get a housing loan, would agree that there are innumerable companies today that provide housing finance in India. Be it nationalised and private banks, finance institutions or home loan brokers – all these offer home loans in this day and age. It could be very challenging to understand the appropriate selection criteria of a reputable and dependable housing finance company in India. Here are some of the benefits that will help you to identify a suitable organization for your home loan:

• Customer friendly: Most of the housing finance institutions in India are driven by rules and regulations. Some of the biggest organizations in India are nationalised banks. They adhere to very strict standards of criteria, processes and documentation. However, a customer friendly organization would reduce the processing and services fees, provide a customized house loan and support the customer during the repayment process.

• Services & features: There are several services and features of home loans that can support the customer requirements well. For example, some organizations offer excellent home insurance products along with their loans. There are other organizations that offer credit cards, loyalty discounts and excellent services as well.

• Faster loan processing units: Some housing finance companies are known for their efficiency while others are known for their delays in the home loan process. This is a very important factor while selecting an organization. A faster loan processing unit would be important for home buyers, who have an urgent deadline. A nationalized bank may or may not be the best choice at this point if the process for the loan hasn’t already begun.

• Negotiable interest rates: The best home loans in India are not the ones with the non-negotiable interest rates. A right home loan candidate would receive an optimized interest rate, choice of floating, fixed or hybrid loan structure, easily accessible documents and the apt tenure. Most loans calculate interest rates on the basis of a customer and his repayment ability. If a strong process is in place, it would help one receive a home loan much faster than usual.

In other words, the organization you choose is the most powerful factor with respect to your home loan. Borrowers should conduct extensive research about the best companies, ask a lot of questions and read the fine print carefully before agreeing to the loan. Speak to the existing customers – the best resource to understand flexibility, repayment structure and the level of support the lender provides.