So you’ve taken a long hard look at flats for sale in Palakkad and have finally shortlisted a couple of them. Is the price worrying you? You don’t have to put off buying your dream home just because you don’t have the full amount with you right now! You can always apply for a home loan, provided you have a regular income, and a decent credit score. There are many providers, so how will you choose your lender? Here are some pointers:
- Location: remember that all lenders are not present everywhere. If your chosen property is far from your workplace, look for a lender who has branches in both locations, so that it becomes easy for you.
- Your credit record: without a good credit score you may be refused loans by most housing financiers; however, there are some who will be willing to lend you the money. Remember that they will charge a higher rate of interest to cover their risk.
- Income and Eligibility: the loan amount you get depends on the value of the flat in Palakkad and your income; 80-85% of the value is normally the amount that is disbursed as loan. Your income will be considered to check for your eligibility. Compare how much loan each lender is offering, as well as the down payment and EMI. See whether you can pay a big sum now so you can pay lower EMIs later, or vice versa.
- Tenure: some banks may offer loans with a 30 year tenure, which is usually not offered by housing finance companies. Weigh the pros and cons; when do you think you will be able to repay? Sometimes, there is a penalty for prepayment, especially if it’s a fixed rate loan from a bank. Housing finance companies on the other hand, do not charge penalty usually. Carefully check the offer from each institution before deciding on your lender.
- Interest rates: Loans are available on fixed and floating rates. Floating rates change with fluctuations in the interest rates. However bank interest rates are generally more transparent than those offered by a housing finance company. The rate change is also more frequent on loans from banks as they are required to review their base rate annually. Housing financiers usually increase the rates quickly during an upward cycle, but may be slower in reducing rates during the declining cycle.
- Processing time: private sector finance companies have quicker processing of loans, so if you need the funds urgently, you may do well to approach them. Remember however, that you may have to pay a slightly higher processing fee.
Don’t be in a hurry to decide on a lender. Make sure you weigh all the factors, and make an intelligent decision. SA Homes is one of the most reputed builders in Palakkad, offering premium 2 and 3 BHK apartments in Kalpathy and other prime locations. They can help you choose a lender for your home loan. Call them now +91 9400 228 228 to speak to a representative or visit www.sahomes.in.