Things You should Know before Choosing Your Home Loan Lender
Dec 17, 2018 Home Loan
When you decide to buy your own house, one question you may struggle at, “who should I approach for a home loan?” You may be in dual mind whether you should go for the bank with which you have an existing account. Well, let’s not hurry to conclude.
There are lot many factors that you should consider before deciding to finalise your lender.
There are lot many factors that you should consider before deciding to finalise your lender.
- Banks and other financial institutions may charge up to one per cent as a processing fee to provide you with a home loan. It may vary from 0.25 per cent to one percent. You must consider the fact that the lender that you would opt for charges the minimum amount of processing fee as it is not a small amount. For instance, to avail a loan of INR 50 lac, processing fee can vary between INR 12,500 and INR 50,000. You can always negotiate with your lender to waive off this amount entirely. If you have a long association with your lender, this task becomes easier anyway. If you are an old customer of the lender, they will tend to exempt such smaller charges including the administrative fee on the home loan.
- In case the rate of interest is higher your bank than other financial institutions, you should seek a new bank or financial institution for a loan. It might seem to be a fraction of per cent, but when you calculate the amount that you would repay over the years can be of enormous difference. No waivers can set off the loss that you would bear.
- When you deal with agents, check whether the agent is a third party vendor to the bank as most of the private banks opt this to bring in customers. It is wiser to do the negotiation party with the lender directly to get a better deal. In a way, you will be able to understand the process as well. Do not be a victim of misled or misguided by an agent.
- Not always cheapest is the best deal. When it comes to borrowing g money, you should always opt for a trusted institution for a loan, which is an authorised one. If the lender is a smaller operator who is ready to provide the loan at the cheapest rate of interest, it is not advisable to go for it.
- Home loans are way too complicated that we believe. The approach of one-size-fits-all approach would not work here. Every lender has different terms and conditions, and so, is the need for each borrower. It would be a better idea to go online to look for services that lenders provide that suit you the best.
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