Home Loans Always Bring a Smile! Sachin Karpe Views

“Having your own house brings a sense of pride and accomplishment in a person’s life” says Sachin Karpe while initiating a conversation on home loans. Talking about home loans, for everyone it is a great support but at the same time it is also a tough thing to live with if precautions are not taken in the initial stages. Before applying for a home loan and paying the processing fee one must make sure they analyze the following aspects properly:

1. Knowing the loan eligibility:  The loan amount which is to be sanctioned depends on the person’s income and previous track record when it comes to repaying the loans and credit card dues. Home loan lenders generally provide 80 per cent of the value of the property as the loan amount, subject to their income. They only consider the income heads which can be used to repay your loan. 
2. Check Your CIBIL score: Credit Information Bureau (India) Limited (CIBIL) provides a credit score on a scale of 300 to 900 based on a person’s previous credit card usage, how they maintain their bank accounts, any check bounces, existing loans, uninsured existing loans, loan repayments, number of times a person has applied for a loan or a credit card. Individuals with a CIBIL score greater than 700 are more likely to get a home loan. All the home loan lenders approach CIBIL for this score whenever anyone applies for any type of loan.
3. Type of interest rate: The type of interest rate a person chooses has an impact on the monthly EMIs he or she pays. It is important that people know the difference between fixed rate home loan and floating rate home loan. 
4. Loan tenure: The EMI is calculated on the basis of the amount of the home loan, home loan interest rate and loan tenure. 
5. Read the documents carefully before you sign: Don't let the bunch of home loan documents bog you down and just sign on the dotted lines. Check the documents to ensure that the terms are the same as what you negotiated and agreed upon. Read the documents carefully and know the different charges applicable. Importantly, know the processing fee, late payment fee, etc.

Buying a home is an important personal finance decision for every individual. So Sachin Karpe says before applying for a home loan and paying your processing fee always keep in mind the above points and live a happy and tension free life.