| With the economy 'shining' and salaries heading | | | | 1. Gather data on interest rates |
| northwards, individuals can actually find their dream of | | | | It is a wise proposition to get interest rate information |
| a big house in a posh locality come true. | | | | from more than one source and compare the offers. |
| Today's youth are hard working and career driven and | | | | A long term loan will mean lower EMI but probably a |
| are not ready to compromise on the quality of their | | | | higher interest rate and result in paying more for the |
| dream house for a few bucks. There are a multitude | | | | house. |
| of home loan banks in India to choose from. The home | | | | 2. Enquire fees |
| loan industry has never looked more lucrative with real | | | | The processing fees, administration charges and the |
| estate experiencing a boom, prices are heading | | | | quantum of loan should be discussed properly. It is |
| upwards. Housing finance companies (HFCs) are | | | | better to have a written statement of all fees |
| providing platter full of advantages to woo the | | | | connected to the loan from the lending bank itself. |
| borrower with value added services and flexible | | | | 3. Pre-approval letter |
| products. | | | | Sometimes banks issues a pre-approval letter |
| To find cheap home loans in India, there is an array of | | | | agreeing to finance a certain amount. This gives a |
| possibilities. Individuals can borrow from bank as home | | | | significant weight and sellers deal seriously. One can |
| loans. Various housing finance companies (HFC) | | | | expect a modest price range and negotiate a better |
| provide personal loans. Another option is loan against | | | | deal. This is more important if one is taking bank loans |
| property (LAP) - a loan given against the mortgage of | | | | for commercial properties. |
| property. | | | | 4. Negotiate loan |
| Before taking a loan, there is some homework you | | | | Most loaners will bring down their charges for |
| need to do: | | | | customers with a dependable reference, so do not be |
| Five steps in choosing the right loan | | | | shy about bargaining. A bargain deal will easily fetch a |
| The current housing loan market requires proper | | | | home loan at around 0.25-0.5% lower than official |
| research before opting for a loan. One should not get | | | | rates. |
| carried away by tricky advertisements. Rather than | | | | 5. Avoid greedy lending |
| banging head with terms like special interest rates for | | | | Do not deal with person who asks you to include |
| fixed tenure, hidden terms and conditions etc its better | | | | fictitious data on your home loan application to get |
| to opt for the bank that offers the lowest EMI | | | | quick approval. Also do not get pressured into |
| (equated monthly installments). | | | | borrowing additional finance than needed. |