First-time Home Buyer? Here’s What to Expect
Are you planning to buy a home for the first time? This can be an exciting and nerve-wracking experience at the same time. Especially for first-time home buyers, it can be quite an overwhelming process without adequate knowledge of home loan market.
Right from hopping through one property to the other and scouring through the web for best housing loan at an affordable interest rate; the journey can be complicated enough. There are many things to process – choosing the lender, deciding the loan tenure, working out the rate of interest and EMI, and gathering all documents.
Well, the commitment is long-term but the preparations needn’t be.
With adequate information and some quick home loan tips for first-time home buyers, buying a home can be as smooth as a cake walk.
Home Loan Tips for a Smooth Home Buying Experience
Maintain a Good Credit Score
The first and the most crucial tip we can give any first-time home buyer is to pull out your credit report to see your actual financial standing. if your credit score ranges from 750-900, it is considered an excellent score to get home loan approval. You can easily.
Decide Loan Amount, Tenure & Estimated Home Loan EMI
The biggest and the most common mistake most first-time home buyers make is opting for the longest loan tenure in order to have minimum EMI. Let us explain this with an example.
If you really want to strike a balance with respect to the loan tenure while saving money, make sure to:
- Decide the loan tenure where your estimated EMI comes at a comfortable amount. The tenure doesn’t necessarily have to be longer or shorter; you have to choose what suits you best. To estimate a Home Loan EMI that you can comfortably pay every month, you can take the help of our online Home Loan EMI Calculator to do the job.
- The loan amount can’t exceed 70-80% of the current market value of the property you’re planning to buy. Make sure you have enough provision for the balance amount. You can avail a personal loan for the balance amount to be completely covered.
Know Your Home Loan Eligibility Before Hand
To be better prepared to address the unpredictability regarding home loan application approval or rejection, it’s best to know your home loan eligibility beforehand. If you wish to experience a smooth home loan buying experience, it’s best to know your eligibility for the home loan ahead of time. If your credit score is low, you can
Know the Basics of Home Loan
Getting a home loan approval is a time-consuming process and there are a lot of steps involved. Starting right from the documents required to apply for a home loan, process flow of home loan approval, bank’s property inspection process, and disbursal of loan amount are a few important steps that every home buyer should understand in detail before applying for the loan.
Provisioning Margin Money/Down Payment
For those new to the world of home loan, banks and NBFCs approve only up to 90% of the approved property value in the documents. Rest of the money has to be managed by the home buyer himself.
It is always wise to be well prepared for the down payment to avoid exhausting all your savings at the time of taking a home loan.
If you’re planning to apply for a home loan, we hope these crucial home loan tips help you in moving ahead. It is always better to spend some time and consider multiple NBFCs to ascertain the credit institution that suits your needs the best.
Feel free to write to us at email@example.com or call us on 1800-200-9898 for any queries regarding Home Loans by Clix Housing.