Home can be an asset which can help you to reap some financial benefits. It can be for Investment purpose or for your living. A home loan is a great form of financial assistance if you are short on cash, or are not in favour of liquidating your savings.
Things to consider before applying for a home loan:
1) Start saving for a down payment. Depending on your lender and the type of loan you choose 15 – 20% of the property value should be kept aside for down payment.
2) Remember that there are 3 crucial factors that formulate a loan. a) Down payment, b) EMI’s, c) Repayment tenure. See how much you can afford.
3) Know Your Credit Score. Good credit score puts you in a better position for loan process. It literally takes a few minutes to pull your credit report.
4) Get your financial documents in order. When you apply for a loan, you need to provide the required documents.
5) Stay at your secure job. Do not jump jobs as it may bring some insecurity. Pay off unsecured debts.
If you are able to prove that you can repay your home loan will be a big advantage to get the home loan sanctioned. Bank definitely would like to analyse your current outgoings and financial commitments before sanctioning the loan.
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