11 must know home loans tips and tricks!

Buying a house is once in a life time decision for most of us. Buying a house can be a fun and exciting experience. But finding the right home is just one step in the process. Most of the us ignore choosing the right home loans and see set of surprises later. Mostly we will refer the builder or friend who had recently taken home loans. Here are some tips to help make finding the right home loans as easy as possible.

“When I took the home loan I compare home loans interest rates of loan products. While I was sanctioned a loan for 15 years, I foreclosed my loan six months ago, that is within ten years,” said Gopi Krishna.

What are the right things he did? Read on to learn a few useful tips from him.

Tip 1 – Good research:

Do not go as per what your loan agent says. You do your own research of the best terms available in the market. “While taking a loan, my agent did everything to stop me from going to a specific bank. I later on realized why, specific bank was paying less commission to agents, so they earn less. Hence the agents never encourage few banks,” said Srinivas. “I went and choose the bank that gave me the cheapest rate of interest,” he added.

Tip 2 – Get your financial documents in order:

When you apply for home loans you need to provide your lender with number of financial documents. Having these documents already assembled will help accelerate the processing of your loan application.

Tip 3 – Park your additional funds:

A couple of banks have a facility, which allows borrowers to park their additional funds in the loan accounts. “This will reduce the interest proportionately from the principal amount for the time that the amount was parked. This is an interesting option. This was not there when I took a loan,” said Sandeep.

Tip 4 – Learn what is floating or fixed rates:

There are two types of interest rates that banks offer: floating and fixed interests. Floating interest rate is linked to market. It moves in tandem with a base rate.  Where as fixed interest remains fixed for a few months defined in the loan agreement. It is important to understand that in most cases floating rates work out cheaper than fixed rates in the long run.

Tip 5 – CIBIL Score:

It is important to have a score of 750 plus to get attractive rate of interest on your Home loans. CIBIL data indicate that 80% of the home loan approvals are given to customer who have a credit score of 750 plus. Low CIBIL score could possibly reject your Home Loans application or you may have to pay a higher interest rate.

Tip 6 – Understand foreclosure norms:

Recently, RBI banned foreclosure penalties. So make sure you do not pay anything extra while foreclosing your loan.

Tip 7 – Save up to foreclose:

If you can save Rs 1 lakh in the current fiscal, do not use it on a dream holiday abroad. Instead use it to foreclose your loan. “My advice to every borrower is that learn to foreclose your loan as soon as possible. The sooner you free the amount you pay for equitable monthly installments (EMI), the earlier can you enjoy the freedom to spend that money on luxuries of life,” added Sandeep.

Tip 8 – Compare processing fees:

Whether it is for a fresh loan or for a balance transfer. Enquire in all the banks before you finalize. Also make sure you give a cheque for processing fee instead of adding it to the loan account. If we add processing fee to home loans, say Rs-10,000 fee on 20 years loan with 10% interest rate, then one would end up paying Rs-23161.

Tip 9 – Read the documents:

Read everything written in the loan agreement before you sign on the dotted line. It is very important to be aware of terms and conditions. “I have to pay Rs-5000 every time I take a home loans provision certificate for tax saving” said Ramesh.

Tip 10 – Increase the down payment:

Every borrower has to pay some money from his own pocket while buying a house. Try to pay as much as possible as down payment. This will reduce your interest paid on the principal.

Tip 11 – Spend conservatively:

Keep a tab on your spends during the home loans tenure. The old adage “A penny saved is a penny earned,” holds true in case of home loans too. When you save money, you could actually use it to foreclose the loan.

{Source: http://loanyantra.com/blog/home-loan-hot-tips.html}

Five Factors To Consider When Looking For The Best Home Loan.

It is an exciting time, purchasing a new home. There is so much to do but first things first, how do you find the best home loan? The easiest solution is to work with a mortgage broker who'll do all the legwork for you. Plus, one of the biggest benefits of using a broker is their ability to assess your needs, narrow down the options and then advise you on the best home loan for you.

Don't let yourself become overwhelmed by all the numbers and fine print, simply focus on the following five factors:

1. Do I prefer a big bank or small lender? Voice your preferences for a small lender or big bank with your mortgage broker at the very start. This will help you to refine your search and may help to speed up the process of researching and comparing the best home loan.

2. Which style of loan is right for me? There are a multitude of loan styles and a reliable mortgage broker will be able to guide you through them and explain the pros and cons of each.

In general, home loans fit into one of the following categories:

i) The standard variable loan: when you take out a standard variable rate home loan your interest will be charged at a variable rate as determined by your bank or lending company. This is an appealing option when interest rates are high and predicted to fall.

ii) A fixed-rate loan: this home loan model allows you to lock in to an agreed interest rate for a fixed term or for the life of the loan. This is good option when interest rates are low and are predicted to rise.

Your mortgage broker will guide you in deciding on the best option for you. This may be a combination of the above two types of loans depending on the economic climate at the time when you are borrowing.

3. Can I afford to do this? Once you have determined which style of home loan suits you best it's important to look carefully at the loan and ask yourself the following questions - discuss these with your mortgage broker:

i) Have I saved enough of a deposit to establish the loan and cover all of the upfront costs and fees?

ii) What are the exact repayments I will be making?

iii) Is my current financial situation likely to change? Will this affect my ability to pay off the loan?

iv) Do I have adequate income protection to cover my mortgage repayments in the unlikely event that I am affected by illness or injury?

4. Does the loan provide me with flexibility? Before signing on the dotted line investigate how flexible your loan will be. Ideally, you should be able to make extra repayments and pay off the loan faster. Alternatively, you may also like to have the option to redraw on the loan to pay for things like renovations or to access money in an emergency.

5. Am I fully informed? Availing of a loan is a big decision and it's a huge responsibility. Ensure that all fees are fully disclosed before signing anything. Whilst we all like to be optimistic, life does throw us curve balls from time to time so also make sure you know what your options are should you be unable to make payments or should you wish to sell the property and terminate the loan.

To find more useful information on how to get the best home loan visit Best Home Loan

{Source: http://ezinearticles.com/?Five-Factors-To-Consider-When-Looking-For-The-Best-Home-Loans&id=7394159}

Can i qualify for a home loan at low credit score.

Housing Loans at attractive interest rates from HDFC Home loans. Best home loan rates for women and salaried individuals. Avail home loans at low processing fees.

Some quick mantras to win a Home Loan application.

Home Loans at attractive interest rates from HDFC Home loans. Best home loan rates for women and salaried individuals. Avail home loans at low processing fees.

Special Home Loan Benefits for Women.

Geeta is a single woman in a big city. She plans to apply for a home loan for women to buy her dream house. A few decades ago, she would have found it difficult to get a loan. After all, In India, women-owned SMEs have a 250% higher chance of getting rejected for a bank loan as compared to men-owned SMEs.

Taking heed of this, many banks and NBFCs today are taking measures to change this situation for the better. Financial institutions are more willing to lend to women with good credit ratings and stable incomes. They even offer women certain special benefits, which loan-seekers like Geeta can avail.

Interest rates

It's not just a general perception that women pay their dues on time; many studies prove that women are indeed less likely to default on loans than men. So, lenders offer concessions on interest rates on home loan for women. Geeta can expect to pay an interest rate that is 0.05-0.1% lower than normal. That might seem like a small concession. But values of houses run into lakhs or crores of rupees. That means Geeta can expect significant savings on her repayment. Her monthly equated monthly installments (EMIs) will be lighter. But to get a lower interest rate, Geeta will have to be the primary applicant or co-applicant for the loan.

Stamp duty for house registration

Many states in India offer a lower stamp duty for house registrations done in the name of a woman. They do this to incentivize property ownership by women. A lower stamp duty also boosts borrowings by women. Geeta's stamp duties charges may be 1-2% lower than they are for men. Considering the property value is in lakhs/crores, this can be a substantial amount of saving.

Tax deduction

Geeta can also avail tax benefits from home loans. Women can reduce their taxable income by a total of Rs 3.5 lakh through their home loan for women repayments. Of this, Rs 1.5 lakh is the maximum limit on the interest amount paid on their loans. The remaining Rs 1 lakh is the amount she pays towards paying back the principle amount. This applies if she lives in the house herself.

Special schemes

http://www.outlookmoney.com/start-up/level-the-playing-field-485 financial institutions sometimes offer special schemes on home loan for women. For example, they offer gold vouchers to female homeowners. Paltry as they may seem, such schemes can help women like Geeta take a step towards financial independence.

The bottom line

As a woman, Geeta can avail all of these benefits. This, of course, depends on certain criteria like a stable income and impeccable credit history-just like any other borrower. In addition, there are many benefits she-and hoards of other women-can avail like lower stamp duty charges. So, yes, women must buy homes when they are ready- with the help of a home loan.

{Source: http://www.tatacapital.com/blog/home-loan/special-home-loan-benefits-for-women.htm}

Housing Finance Ltd Offers Best Nri Home Loans

Many people mental condition to own have own homes but have been incompetent to buy them. But right away with easy loans offering by the Housing Finance Ltd, people have the ease their own homes easily. The Housing Finance Ltd is one of the many renounced companies which have been elite by the home loan applicants.

The association has an LIC housing loan EMI calculator, which creates it accessible or the loan person submitting focus to the volume of loan they might need for their home or the volume of loan they have been authorized to take. The housing loan EMI electronic calculator takes in comment a series of things prior to it calculates the authorized volume of interest. The person submitting focus can afterwards select from the opposite skeleton similar to LIC NRI home loans devise and motionless the devise which suits their need.

The LIC NRI home loans offering by Housing Finance Ltd have been rarely elite by the NRIs. With the LIC NRI home loans, the Indian staid in the alternative countries can still conduct to take loan and buy skill in home country. They can make use of the housing loan EMI electronic calculator to work out the loan volume and to work out their EMI installments. They can afterwards request for the LIC NRI home loans offering by Housing Finance Ltd and can buy, construct, correct or reconstruct their home in India.

If you need to request for a loan by the Housing Finance Ltd, you need to initial work out the volume which you might need. You can make use of the LIC housing loan EMI calculator, which would need your personal and veteran report to work out the amount. Different report might be compulsory for the opposite sorts of housing loans which have been offering by Housing Finance Ltd.

To know some-more about Housing Finance Ltd, you can revisit lic-housing-finance-ltd.com. You can get the report associated to the LIC NRI home loans and can additionally make use of the LIC housing loan EMI electronic calculator which is accessible on the site. The loan focus form is additionally accessible here and you can simply download which and request for your loan.

{Source: http://nriloans.blogspot.in/2010/05/lic-housing-finance-ltd-offers-best-nri.html}