Before applying for a home loan and paying your processing fee, ‘Madhavaram Constructions’ the best real estate service in Bangalore, will advise you to analyze the following aspects:
- Assess your EMI affordability limits
- Check your loan type
- Tenure of loan
From a borrower’s point of view, the main factor that influences home loan is probably the EMI amount that will outflow towards repaying your loan for at least next 10-15 years. You should not stretch your limits of EMI, on the future expected growth in income. Banks or financial institutes provide home loan which is 80 percent of the value of the property, so you must carefully consider about your source of income so that loan could be paid smoothly.
Check your loan type:
Generally two types of home loans could be availed on the interest rate-fixed and floating. A fixed rate loan is where the interest rate doesn’t change with market fluctuations whereas floating interest loan, on the other hand, varies according to the market conditions. Though a fixed interest rate may seem more attractive in a high interest regime, experts’ advice to go for floating interest where rates are bound to come down some time even if they are high at present.
Tenure of loan:
Your loan’s tenure is being calculated on the basis of the amount of home loan being sanctioned as well as the monthly EMI which you will have to pay. The longer the tenure, lower is the EMI and vice versa. Even the amount of loan interest depends on the tenure of loan payment. So you must decide carefully which option to go with.
Possessing a clear understanding of these small things could make a big difference in home buying decision, fetching more profitability.