Are you thinking of taking a home loan for buying a new home? Make sure you get the best deal because once you have it, it will most likely be with you for next 15-20 years or even more. Keep reading to find out how to hunt for best deal on home loans.
Estate prices and home loans are one of the greatest love stories ever told. Buying a home is deeply tied with the economy and real estate prices as well as the kind of loans that you can afford to take out. With the rising interest in buying home properties, different banks and financial institutions are looking to make it easy for you to get loans at different capacities and rates of interest.
Getting a good offer on a home loan is important, so here are few ways that might help tip the scale in your balance:
Keep your mind open
Banks are all looking towards getting more and more people to sign up to their home loans so you never know what kind of offers they might have running. Many people tend to stick to the bank they have an account with, just to make the process easier. This might be more harmful than helpful because in doing so, you might miss out on better offers given by the other banks. Keep an eye open for the best home loans.
Try your luck elsewhere
Banks are not the only institutions where you can find home loans that will suit your needs. There are so many other financial institutions that you can try out for loans. They normally have quicker turnaround times and better facilities so you might find the exact loan you wanted there. Moreover, these institutions are a little more flexible than banks so it is definitely an option to consider.
Look at the overall picture
Did you know that the turnaround time on loans differ for different banks and financial institutions? So if you are looking for a quick home loan, you might not be in luck, even if the rate of interest they are offering you might be great. Instead, you might be able to get your loan processed in just a few days at a slightly higher rate of interest in another bank/financial institution.
All the factors have an equal importance so you should choose based on your immediate needs.
Floating vs fixed
While the fixed rate of interest might be alluring to you, it comes with a lot of rules and regulations such as foreclosure penalties and more. A floating interest rate is definitely a better option to go for in the long run so do not forget to ask the loan manager about the same.
Another point that catches a lot of people off guard is the processing fees. This is the amount that the lender charges you for processing and granting you the loan. This can be anywhere between 0.2% of the loan up to 2% of the loan and few institutions prefer to subtract it at the time of approving the loan or you will be required to pay the same later on; it is better to clarify it in the beginning and save you expensive surprises!
A good home loan should be one that covers all your needs without burning a huge hole in your pocket. These days, more banks and financial institutions are open to flexible factors and clauses that you might want to include or remove from your loan agreement so building a good rapport with your loan manager is the key to get the best home loan!