Criteria for finalizing the bank for home loans

For first-time home buyers, the real estate scenario appears to be favorable enough to take precedence over the available deals and offers. The advantage of credit-linked subsidy available on Pradhan Mantri Awas Yojana (PMAY) scheme to a reduction of up to 7 percent home loans to discount offers from real estate builders, it’s all to the home buyer’s advantage. This is exactly the right time for investors to invest in the best luxury apartments in Devanahalli.

Once you are done with the budget, the next step is to find the right residential project to buy your dream home. The real task comes after that, choosing the right bank which will provide you the home loan. This article will be going to elaborate on the criteria and steps you need to analyze before choosing the bank.

There are many financial institutions available to provide you a home loan, now all you need to do is analyze various factors like eligibility criteria, processing fee, interest rates, and other factors. Real estate is on a boom in Bangalore, builders are offering the best apartments to buy in Bangalore.

Certain factors are crucial for finalizing the bank for the home loans, we must look at them one by one

Factors to consider when choosing the bank

#1. Loan amount and eligibility

The amount of loan you are likely to get will depend on your annual income and the value of the property. Generally, the loan amount would be 70-85% of the property value. However, it could exceed in some cases. According to financial experts, For a property having a worth up to Rs 50 lakh, the customer can aid of a maximum of 80% funding, according to his income eligibility as assessed by the lender.

#2. Loan Tenure

Usually, people prefer to go for a longer tenure as the EMIs are more affordable in the long term. However, the other side to it is that you finish off paying more interest. Accordingly, your dream home becomes more expensive. For people who have started working, it is feasible to choose long tenure as affordability would be a major aspect. There are chances that you pay EMIs before the time if you are working. 2 BHK flats for sale in Devanahalli are the best option for homebuyers in Bangalore, where the prices are affordable and can be easily managed in the long run.

#3. Processing charges and prepayment

The processing fee is the charge banks deduct for processing the loan when you apply for it. This can be somewhere between 0.25%-2% of the loan amount. Lenders also set terms and conditions about prepayment, you must look for the alternatives that suit you best.

#4. Incentives are offered by banks for people with good credit scores.

While the customer’s credit score has always been a key determinant of how much loan they can avail of, your credit score also ensures the rate of interest that the bank would charge from you and certain banks offer much more reduction in interest rates. Financial institutes like Bank of Baroda charge interest on the loan, based on the customer’s risk profile.

IndusInd Bank for instance currently offers its home loans at 6.85%, which is more favorable than other banks. However, this rate applies only to those applicants who have a credit score of 760 and above. The conclusion is that a borrower with a splendid credit score may be able to avail of cheaper home loans by selecting a bank that offers such facilities.

#5. Revisions in the loan rate

Revision in loan rate is done by the Reserve Bank of India, a borrower who is looking for a home loan should select that bank that immediately modifies its policy according to the revisions done by RBI. The borrowers who have opted for a floating rate of interest should keep a check on the implementation of revisions by the bank.

1 BHK flats for sale in Devanahalli are the best option for a person who is looking for investment in real estate, the burden of EMIs will be very less and returns will be high.

#6. Turnaround Time

Always try to go for that financial institution that takes less time in processing the documents and disburse the loan quickly. This enables you to plan your purchase smoothly and efficiently. The bank that is having a good reputation in terms of turnaround time must be opted by the borrower.