We all dream of buying a house of our own, at some point in our life. But with increasing rates of property, that dream becomes distant.

Here’s your cheat sheet to keep things in mind while getting a home loan.

1. Market Research: Before getting a home loan, it is essential for an individual to do complete market research. The person should have an understanding of various aspects of Home Loan. The lender can browse through many websites providing detailed information on the various products available as also provide insights on the comparatives.

2. Best Deals: After doing the complete market research, the lender should narrow down the deals that are best suited for them. The lender should consider a few factors like Loan Amount Required, EMI Repayment Capacity and Loan Tenor, Loan to Value Ratio (LTV) – Maximum possible financing for the property being acquired, various fees & charges, before finalising the deal.

3. Interest Type: One thing that you should definitely keep in mind while getting a loan is the type of interest applied by the bank. Various types of Interest Rates and schemes like Fixed Rate, Variable Rate and hybrid rates, which are combination of fixed & variable rates have been offered by different banks.
4. Eligibility Criteria: In order to avail home loan a lender should meet a certain eligibility criteria, such as:

a. Hold a CIBIL score of 750 or above.
b. Be within the age of 23 to 70 years of age.
c. Have a stable source of income.

5. Documentation: After you have found a loan that is suitable for you, it is advisable to read all the loan related documents carefully. It is very important to understand the various terms and conditions applicable to the contract to avail the Home Loan facility.

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