Buying a home is one of the milestones that will have a great effect on the financial security of your family in the future. Purchasing a piece of real estate is a great investment that is bound to reap rewards in the long run. For that reason, it is imperative that you take great care in making sound financial decisions that reduce risk and maximize rewards.
In order to purchase a home – be it a flat or a villa – it is necessary that you take out a home loan. But how to decide which home loan is the most favorable? There are numerous options available to choose from, but some are definitely better than others. It is important that in choosing a home loan, you don’t become lazy and simply select the first lender you approach. Choosing the right lender for a home loan can have a huge effect on your future; to help you make the right choice, here are some tips that you should keep in mind:–
The initial bad thing you can do when searching for a home loan is to get swayed by advice and recommendations of close friends and family. While asking for advice is always good, someone’s opinion is not a substitute for good research. So never blindly follow somebody’s opinion – do your research and make an informed decision.
While taking advice from laymen is to be avoided, nothing is more valuable than the opinion of a trusted expert, whether it is your chartered accountant or the representative of your bank. They will be able to guide you in the right direction.
Don’t make a beeline for the cheapest rate of interest being offered. While the rate of interest is important, it is not the only criteria for a good home loan. Find out about other aspects of the loan and then make a decision.
Compare the home loans offered by at least 5 to 6 major lenders. When you compare the offers, don’t just focus on the rate of interest. Other aspects that you should focus on are post-sale services, the base rate, the maximum tenure and margin offered, fluctuations in the rate for the last 2-3 years and whether a property similar to yours has been given a loan by that lender in the past.
All these aspects combined will give you a clear image of which loan is the best for your needs and the requirements of your property.
Don’t go for the simple and straightforward home loans. Today’s market is flooded with new-age financial instruments that go beyond than just offering to lend you money to buy a house. The right home loan can help your investment and even provide tax benefits – choose a home loan that saves you the maximum amount of money.
The right home loan can help you realize your dreams of purchasing a home. Choose wisely and you and your family will have a valuable asset for the future.
