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Everybody looks forward to buy a home, but funds become a major issue for most of us. So, many of us approach banks or housing finance companies to fund our purchase. However, choosing the best home loan lender is extremely important in order to avoid the hassles linked to availing a loan. Tracking down an ideal lender can be a tricky process. Here are some tips which will help you in your search for the best investor for your dream home.
Finalize Your Property
Before you apply for a home loan, you should always finalize your property. This is vital because many banks lend for property which is already furnished, while others lend for self-constructed or under-constructed property. Hence it is better to finalize your property before searching for lenders.
Check The Lender’s Credentials
It is extremely important to check the credentials of your lender. Check out the reputation of the lender. Find out if the company has received any awards or has been assessed independently. Find out what others say about its products and services. Take the help of a financial expert, if required.
Quick Processing & Disbursal
You should always deal with a lender who is fast to process and disburse your loan. Ask your friends and other people who have dealt with the lender before to find out whether he fulfills his commitments on time or not.
Clarify Repayment Terms & Conditions
Often lenders levy certain repayment terms and conditions. Before finalizing your lender, you must clarify these conditions. Some of the conditions are:-
• Fees charged for transferring the balance amount to another lender
• Whether there are any prepayment charges or not
• If there is any penalty for settlement of outstanding loan amount or not
Find Out About Hidden Costs
Mostly, people are concerned about interest rates charged by banks while procuring a home loan. However, there are several hidden costs involved which may pinch them later. Therefore it’s advisable to find out such costs – valuation fees, processing fees, legal charges – before availing a loan.
Negotiate On Home Loan Rates
If you have a decent income and a good CIBIL score, then you can always negotiate with various banks regarding home loan rates. It’s a free economy, and if you have a good CIBIL record then you can definitely get a good bargain.
Be Assured About The Lender
You should always be well-informed about your lender. You should do an extensive research on the Internet to locate similar lenders as per your need. Get detailed information about the lender and compare their offerings before the final selection.
Look For Mutual Benefit Tie-Ups
On several occasions, builders and banks have tie-ups with each other for mutual benefit. You can also take advantage of such tie-ups. Normally in such a scenario you are financed by a particular bank, if you buy your home from a specific builder. Find out about such deals which will help you get the loan at the best possible rate.
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Source by C Prabhakar