Nowadays houses become more affordable than they were a decade ago, thanks to aid of home loan facilities. Banks are queuing at customers’ and offering diverse options of home loans. In this situation, it has become more difficult to choose the right one. Further, taking a house is once in a life time decision for many of us and therefore selecting a right home loan product becomes much more essential to avoid any last minute surprises.
Here are some tips that one should keep in mind while taking home loan:
- Authentication of Executive: Ask the bank executive you are dealing with for his/her identity card and verify it as you are handing over your property and other original documents to the unknown person.
- Ask for your Agreement Copy: Every bank provide one set of agreement to customer. Ask for it if bank is not providing .It is essential to read the home loan document carefully and understand every aspect of it. This is because if the bank executive fails to highlight some point which is very crucial for you when discussing the terms orally, then it can have serious consequences.
- Fill the form yourself: You should fill up your application form yourself. If you are not filling by yourself, then check all details carefully and keep photocopy of each page with code and name of sourcing agent. Also, make two photocopies of each document and self-attest them.
- CIBIL Score: It is important to have Cibil score more than 750 to get attractive interest rate on your home loan. You should check your score yourself as there are chances that you may have loans reflecting in Cibil which was prepaid by you in past but not updated in Cibil.
- Sanction Letter: Ask for the sanction letter and read it carefully for each term and condition. Particularly, the Must Be Read section as it contains terms which are subject to conditions. Many times banks sanction the loan subject to condition without informing to customer ,it happens generally during month end of the bank.
- Additional charges to be kept in mind: When you are applying for a home loan, get knowledge about the various other charges that the lenders add to the current schemes. This may include administrative and service charges or processing fees. These additional fess fall under the amount that is sanctioned in your name and not under the amount that you take home. So before you finalize any deal, you should make note of such additional charges that the lenders put into the scheme.
- Handing over documents: You should not handover your original documents to executives. Also, take acknowledgement of submitted legal documents from the executive.
- Changing Interest Rates: Before finalizing the home loan, it is essential to check with the banker about how the changing interest rates would affect the home loan.
- Understand foreclosure norms: Recently, RBI banned foreclosure penalties. So make sure you do not pay anything extra while foreclosing your loan.
- Issuing Cheque: If you issue any cheque for charges or fees, remember to issue crossed cheque in favour of your bank, and not any individual. No bank accepts cash from any customer.
- Pre EMI: Get acquainted about the exact point of time when pre EMI will start, at the time of handing over the check or at the time of printing the cheque by bank.
- Never entertain Freelancers: There are many freelancers, who are willing to do loan procedure on behalf of you. But you should never entertain them as there may be loss of documents occur and there are chances for delay in submissions.
Though, applying for a home loan seems really easy but it comes with its own set of complications. Keeping these few key points in mind would be a good way to start with it. Apart from that, never leave a doubt in your head because it may cause problems later. For your satisfaction clear out everything beforehand and your dream home will be yours in a hassle free manner.