4 Tips To Choose The Best Bank For Home Loans

Financing your dream home is one of the toughest tasks that you will face as you start materializing the project. Arranging for the funds to purchase the home is extremely important especially when you are a first home buyer and is in your youth. This is because houses are going to consume an enormous chunk of your savings and its liability would last up to many years depending on your expense. Home loans from various banks are the most common way of arranging funds for any big purchase.

The following are 4 tips to help you choose the best bank to facilitate home loans.

 1. Understand the pros and cons of fixed and floating rates

Bank loans are available at both fixed and floating rates. Fixed rate home loans have a permanent interest rate over the entire tenure of the repayment of loan, while the interest rates of the floating rate home loans changes with market conditions. Fixed rates are good in the sense that you are certain about your repayment schedule. The weakness of this method is that, someday when the interest rates are cut down in response to the market conditions, you cannot avail its benefit. Floating rate home loans are tied to a base rate and then a floating rate. The rates vary according to the market conditions, sometimes they go up and sometimes they come down as we proceed along different business cycles. It’s a bit risky, but you can have significant benefits in the long run.

 2. Your bank may not tell you everything

Home loans are not just about the principle amount and its interest rate, there are a lot of other charges that the sales personnel might not bring into your notice. Processing fees, Mortgage Deed Fee (MOD), Prepayment penalty, Commitment fee, Legal fee are means of levying heavy charges on the loan you take. Enquire about each of these fees to your sales personnel or the senior officials of the bank to avoid sudden disappointments.

 3. Turnaround time

Different banks take different lengths to sanction and disburse the loans. Sanctioning of the loan should ideally happen within 5-10 days of the application, if you have provided all necessary documents. The sooner you get, the better; however if the bank provides you the loan very easily with little time to verify the documents and the project under planning, you need to be a bit careful as credible banks follow proper procedures to sanction loan which might take time. Disbursement of loan is either done in instalments based on the progress of the construction or in full amount. Even after lending money, banks do post- disbursement services like giving regular account statements and interest certificates every year. Make sure that you your bank correctly do all these before taking the decision to avail loan from it.

Read more

Builders in Calicut

Leading builders in Kerala
Best Builders in Kerala
Top Builders in Kerala
Trusted Builders in Kerala
Best Builders in Calicut 
Top Builders in Calicut 
trusted builders in Calicut 
Leading builders in Calicut 
builders in ottapalam
calicut builders

Location: Kozhikode, Kerala, India

Comments

Post a Comment

Popular posts from this blog

Apartment Living and its Benefits for People with Busy Lifestyle

Image
Times have changed and so did our lifestyle too. We get caught up in our everyday lives and become busy, leaving us with little or no time for ourselves. The fast-paced life has made it challenging to maintain a well-rounded life with factors like unpredictable traffic and inconvenient working hours taking away valuable time to be spent with our dear ones and for ourselves too! But have you ever thought of how an individual’s living space can influence the chances of overcoming these challenges to lead a healthy and happy life in spite of their busy schedule? Well, apartments have become the ideal place to live in this time and age. Thanks to the amenities, facilities and fine features in apartments, it is now easy to indulge in activities to keep our bodies fit and mind relaxed. Below listed are some of the key benefits of living in an apartment and factors that support our busy lifestyle too: Easy access and availability of amenities Apartments come with a wide variety of modern and
Read more

Things To Do After Getting Possession of Your Dream Home

Image
Buying a new home can be an overwhelming experience because of the strenuous documentation processes involved. And after crossing all the hurdles many tend to plan about moving in to the house as soon as they receive the possession letter. But there are other important things to be done after getting possession to ensure that the ownership is transferred completely. Here are 4 things to be done immediately after getting possession of a new home.  1. Digitise property documents It is always advised to make copies of all purchase-related documents soon after the registration to use for further official purposes such as address change or for a personal copy before handing over the originals to a bank in case of a home loan. Scanning and digitising the complete set of documents is also a wise step for quick references without taking out the originals from the locker.  2. Transfer public utilities Electricity and water connections should be transferred to the owner’s name after getting the
Read more

5 Common Home Defects

Image
Home owners often tend to ignore minor defects in décor or structure of the home and would postpone fixing the same until it requires immediate action. Minor defects are signs or symptoms of a bigger problem that may burn a hole in your pocket, if ignored. And thus, it is wise to address the problem in its early stage to avoid spending a fortune repairing it. Take a look at some of the defects that require a quick fix: 1. Dampness Dampness on walls is a common problem faced by homeowners but they often wait for it to go away on its own. This defect aggravates during the rainy season and to cover it various remedies are followed like using tiles, which would only worsen the situation. If left unchecked, the defect on the walls could even reach the foundation. 2. Leaking taps This is not a good sign and needs immediate fixing as it indicates a flaw in the plumbing system. Though it would be an expensive and cumbersome process, a flawed plumbing system must be addressed at the earliest to
Read more