Home Loan : Everyone dreams of buying a house, but for this, most people take out a home loan. Especially for the middle class, who think of buying a house with limited income, a home loan proves to be a great option. At the same time, some people also decide to take out a loan due to tax benefits. If you are going to take a loan to buy a house for the first time, then there are some important things that are very important to keep in mind so that the burden of the loan is reduced and you can easily repay your EMI. Let us know what important points should be kept in mind while taking a home loan.
Properly Evaluate The Financial Situation.
The most important thing while taking a home loan is to assess your financial situation. You should decide how much loan amount you should take, keeping in mind your income, current expenses, and existing loans. If you evaluate your financial situation correctly, you will be able to repay the loan EMI easily. Taking out more loans can increase your EMI, which may be difficult to repay, so choose the loan amount wisely.
Keep The Loan Tenure Short.
You should always try to repay the loan in the shortest possible time. When you choose a short loan tenure, you have to pay less interest and also pay more of the principal. Also, when you make a down payment of at least 20% of the house price, you have to take smaller loan, which keeps your financial position better. This way you can repay your loan quickly and get rid of the financial burden.
Increase EMI As Income Increases.
If your income increases, you can repay the loan quickly by increasing your EMI. By paying a higher EMI, you can pay more of the principal amount, which will reduce the loan tenure, and you will get rid of the loan quickly. After repaying the loan, you can put your money in other investment schemes, which can give good returns in the future.
Make Sure to Get The Loan Insured.
While taking a loan, make sure that you get the loan insured. A loan is a liability, and if something unexpected happens, the family should not have to bear the financial burden. Most banks also offer insurance when taking a loan. If you have insured your loan, in case of any untoward incident, the insurance company will repay the loan, and there will be no pressure on your family.
Compare Loan Features.
When you go to take out a loan, pay attention to these things:
- Interest rates—There may be a difference in interest rates in different banks.
- Loan amount—Make sure you are getting the required amount.
- LTV ratio (loan-to-value ratio)—This ratio shows the ratio of your loan amount and the value of the property.
- Loan tenure—The duration of the loan, which will determine how long you will have to pay the EMI.
- Processing fees—Compare the fees charged for processing the loan.
The credit score should be good, as it increases the chances of getting the loan approved, and you can get a loan at good interest rates.
Read the loan agreement carefully.
While taking a loan, the bank makes you sign a contract, which many people accept without reading. But many important things are written in this agreement, such as interest rate, loan tenure, repayment time, fee on first payment, and penalty on late payment. Apart from this, other important things related to the loan are also included in this agreement. Therefore, it is very important to read and understand any loan agreement carefully before signing it.
Read More
Start Saving ₹45 a Day and Create ₹25 Lakhs with LIC Jeevan Anand Policy
SBI PPF Scheme: Save ₹750 Every Month and Get ₹2.44 Lakh in Return, Know How
SIP: It Is Easy To Make 5 Crores By Saving 100 Rupees Every Day, Just Follow This Method
Dailynews24 App :
Read the latest News of Country, Education, Entertainment, Business Updates, Religion, Cricket, Horoscope Here. Read Daily Breaking News in English and Short Video News Covers.
