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Buying A Home? Read This First

Buying A Home? Read This First

Buying A Home? Read This First
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Many home seekers, when buying a home, take the first available loan offer and at times are stuck paying heavy equated monthly instalments (EMIs). Taking a home loan is a long-term commitment, hence, should be decided upon carefully.

So, what should one look for when choosing a home loan? MakaanIQ brings a checklist of what you should consider when opting for a loan:

Interest rate: Do you like the idea of paying a constant EMI every month or are you comfortable if your EMI changes periodically? If variation in EMI makes you uncomfortable, you should opt for fixed interest rate loan. However, if can handle fluctuation in EMIs, opt for floating rate loans.

Also, every bank charges different interest rate on home loans. Hence, it is advisable to compare the best possible rates available and choose what fits best. 

Lender reputation: Read reviews and also consult friends to know about the lender and the quality of service offered. Ask whether the lender was responsive to the customer requirements or not. 

Prepayment penalty: Select a bank that charges the lowest possible penalty, as you will end up losing any possible savings that you will get by changing the lender.

Processing fees and other charges: Buying a home involves other costs like insurance, processing fees, legal fees, inspection fees etc. Opt for lenders that charge lowest rates, as these fees add up to the cost of buying a home.

 

Last Updated: Sat Jun 18 2016

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