Even when the effects of demonetization have been swooping the entire nation with shock, the real estate developers continue to work strenuously on turning your dream homes into a reality. Instead of opting for paying a wholesome amount at once, people generally tend to opt for home loans as it reduces the burden of dealing with large amounts of cash, and also aids in tax reduction.
Before rushing to the bank to apply for a home loan right away, you need to keep the following points under consideration.
- Are you eligible for the loan?
The chances that your bank would grant you the loan depends on your previous loan records and dues, besides your income. So before you go ahead to apply for the loan, do not forget about the monthly EMIs, and calculate how much you would be able to roll out as EMIs every month.
- Choose your lender wisely
Before you zero down on a bank to apply for your home loan, do your research. Make your enquiries and check with the terms and conditions, interest rates, tenure and customer service with various banks.
- Tenure of loan
If the duration of repaying the loan amount is long, the EMI would be less. If the duration is short, the EMI would be high. So keep a check on your choices before you finalize your decision.
- Document of Agreement
Now that you have taken your decision of applying for a home loan at a particular bank, it is important for you to read the terms and conditions and other documents carefully before signing the application. You would have a bunch of papers in your hand to go through, which could be a tedious task, but no matter what, just read every word of the documents carefully.