5 Crucial Things to Know Before Applying for a Home Loan

Are you going to apply for a home loan to buy your dream home for the first time? 

If yes, you should take a pause and consider a few points beforehand. 

Read on and know more!

1. Check your home loan eligibility 

You can’t apply for an amount and expect a lender to approve your application. A home loan is a long-term obligation. Hence, lenders approve the application of only eligible customers. You should check your eligibility and know an amount your income can support. You can do that using the home loan eligibility calculator on your lender’s platform for free. 

2. Compare all offers

You should always compare all available deals on a third-party website before applying for a home loan. This way, you will be able to settle for the lowest home loan interest rate and pay lower EMIs. 

3. Know documents required for home loans

Different lenders may have multiple documents required for home loan. Thus, you should land on their websites and check all in advance. This way, you would be able to start to furnish all relevant documents required for home loans. 

4. Know how much to EMI amount to pay per month 

You should be able to pay the home loan EMIs without hurting your outlays. To know an exact home loan EMI amount, you can use the online EMI calculator. Your lender’s online platform has this facility available 24x7 and for free. 

5. Save enough for a down payment 

You will have to pay at least 15-20% of the cost of your new home on your own. It is known as the down payment. Thus, you should start saving enough for a higher down payment. The higher it is, the lower will be the borrowable amount. In turn, your home loan interest charges will reduce, leading to lower EMIs. 

Considering these points will help a first-time home loan borrower to approach it with confidence.