Things to Keep in Mind Before Taking a Home Loan
May 23, 2017 Home Loan
After months of house hunting and negotiating the prices with the developer, it comes down to taking a loan from the financial institutes or banks to help buy the property. Taking a loan is a huge responsibility and one mistake can lead to a huge financial imbalance which can have an adverse effect in long run. it is better to be cautious and take small steps when taking a loan.
What can a borrower do to ensure that he does not face any unpleasant situation regarding the loan in future?
1. Read the documents
To start with, the borrower must read the loan agreement in detail before signing the papers. It is very understandable that reading ending pages of agreement written in very small fonts can be tiring. Also, understanding certain legal and financial terms might be tricky. To be on the safe side it is better to hire a lawyer to go through the agreement and explain it in detail.
2. Ask questions
Never hesitate about asking too many questions from the bank manager regarding the loan. Just knowing the rate of interest that the bank is offering you the loan is not enough. There are many terms and conditions that the borrower might not understand and may overlook. One should know about all the minute details associated with the loan.
3. Don’t fall for the offers
Some banks offer the facility to get the loan sanctioned in a day or two. Though it seems like an easier option at first, but falling and opting the lender merely for the sake of fast loan approval is not wise. Banks have their module for approving the loan faster which should not pull the customer from asking the questions or looking deeply into the details.
Servicing a loan is a long term process and it is advisable to know about all the options available. Enquiring with different banks regarding the loan and the loan process is a good idea. When the borrower has the idea of different loan options available, it makes it easier for him to pick out the one that suits the best for him.
What can a borrower do to ensure that he does not face any unpleasant situation regarding the loan in future?
1. Read the documents
To start with, the borrower must read the loan agreement in detail before signing the papers. It is very understandable that reading ending pages of agreement written in very small fonts can be tiring. Also, understanding certain legal and financial terms might be tricky. To be on the safe side it is better to hire a lawyer to go through the agreement and explain it in detail.
2. Ask questions
Never hesitate about asking too many questions from the bank manager regarding the loan. Just knowing the rate of interest that the bank is offering you the loan is not enough. There are many terms and conditions that the borrower might not understand and may overlook. One should know about all the minute details associated with the loan.
3. Don’t fall for the offers
Some banks offer the facility to get the loan sanctioned in a day or two. Though it seems like an easier option at first, but falling and opting the lender merely for the sake of fast loan approval is not wise. Banks have their module for approving the loan faster which should not pull the customer from asking the questions or looking deeply into the details.
Servicing a loan is a long term process and it is advisable to know about all the options available. Enquiring with different banks regarding the loan and the loan process is a good idea. When the borrower has the idea of different loan options available, it makes it easier for him to pick out the one that suits the best for him.
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