Points To Be Considered Before Choosing Any Home Loan Option
Property Types: You should know more about type of property in lieu of which you seek loan. There are loans offered by banks to resident Indians and NRIs for ready property, under construction property, self construction and home improvement.
Loan Tenure: The loans provided by financial institutions are offered in tenures or period of years. You should check out the tenure for loans available in the market. There are loan tenures available for up to 25years.
Repayment Options: You need to choose between fixed and floating rate home loans. Many banks and financial institutions will provide you with the option of switching from a floating rate home loan to a fixed rate home loan once a year at no extra cost. But you need to check the facts first with loan providing firm.
No Penalty option: There are no penalty options offered by few finance companies. In this mode, you can opt to pre-pay up to 25% of your loan every year. Pre-payment is permitted after a minimum of 6 months following loan disbursal.
Tax Benefits: You should know the right of your tax benefits on home loans. Resident Indians are eligible for certain tax benefits on principal and interest components of a housing loan under the Income Tax Act, 1961.
Always check with a financial home loan expert or financing company to understand home loan processes and to avail the best bargain on your home purchase.
The home buying process can seem complicated, but if you take things step-by-step and you know how to choose the right home loan, you will soon be holding the keys to your own home.