Zeroing on a home loan online

Most people need a home loan to buy a home. You can search for a loan after selecting a property, or you can go to a lender first, who can sanction you on a pre-approved loan.

The second approach gives you, as the buyer, an edge on the negotiating table.

Here are some tools you can use to get a home loan. You can use these smart ways to get the best home loan from the lender.

Many people go for home loans because they may not have the money to buy a house. But no lender will give unlimited loans. He will assess your eligibility before sanctioning you with a loan.

To find out this eligibility, you can go to any online loan eligibility calculator. Your eligibility depends on factors such as: your income, expenses, other outstanding loans, and your age.

Typically, lenders will only give you a loan with an Equivalent Monthly Payment (EMI) of up to 50% of your monthly income, including all of your other EMIs. Your loan eligibility may differ from one lender to another.

For example, one lender may not offer a loan term beyond retirement, while others may. In such a case, the lender offering a longer tenure may grant a higher loan amount.

To check your eligibility, you can go to each lender’s site or loan aggregator, or to comparison sites like www.bankbazaar.com, or www.paisabazaar.com.

Once you know which lenders can lend you the amount you want, you need to compare their offers. Use the websites of loan aggregators for this. Besides the interest rate, there are various things you need to consider, such as processing fees, administration fees, and any of the many transaction fees.

Processing fees typically range from 0.25% to 1% of the loan amount, but some have a fixed fee structure and others may cap these fees.

You can also find lenders who will waive fees and any other fees. Always evaluate the entire loan agreement, to see who is giving you a better deal or a lower NDE or loan term.

Many lenders have the list of approved housing projects. You can check the list of approved projects on your bank’s or lender’s website. If you choose a property from an approved project, your loan application is more likely and faster to be approved.

Lenders are focusing on digital products to provide faster service. Many lending institutions have formed links with loan aggregators to attract more customers.

Many lenders also offer instant home loans to potential borrowers through their own websites.

For example, you can apply for home loans online through ICICI Bank or Axis Bank websites. Some lenders like Indiabulls Housing Finance Ltd go further and offer loan applications through a Facebook app called IB Easy.

You can even electronically sign your documents, speeding up the process. Indiabulls reports that up to 18% of its additional home lending business comes from digital sources.

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Priscilla C. Carnegie