Buying a piece of property is generally a huge deal. It is a milestone in a person’s life or in the business. It also has a great deal of sentiment attached to it.
However, when buying any property, let it be a home, a commercial property, or any other type of property, it is vital to be rational rather than sentimental. It helps you make a better decision with regards to which property to buy, where to get a loan for it among many other things.
Let’s have a look at what you should know before you apply for a property loan.
Know The Value of the Property
Understanding the value of a property is crucial. If you fail to understand it, you may be fooling yourself into buying it. Look at the location of the property, what amenities it offers, how old it is and it will give you a basic idea.
The reputation of the builder is also vital because it will help you understand how the property will age. Once you value the property before applying for a loan, you have the option to get the best loan out there.
Loan Eligibility Criteria
When it comes to eligibility criteria for loans, it differs from bank to bank. No financial lender has the same criteria as the next one.
Studying these criteria can help you improve the proposal for your loan. This ensures that your loan can be processed much quicker and has lower chances of being turned away.
The faster you get the loan, the quicker you can get possession of the property. One of the main eligibility criteria is your credit score.
Keep an eye on your credit score and it’ll be your biggest friend in the long run.
Look around for the best deal
Unlike a few decades ago, property buyers have a range of lenders to choose from.
Mortgage loans have a certain level of flexibility. Each lender comes with its own set of rules. They have their processes.
However, if you look around enough, you will likely end up with a lower rate of interest and have better terms for the loan. Even a 0.2% difference in the home loan can save you a fortune in interest to be paid to the lender.
Do a financial calculation
When applying for a property loan, you must sit down and do a few financial calculations.
What is the value of the property, what amount can you pay upfront, what amount do you need for decorating the property and maintenance, and other things. These calculations are crucial in times of current mortgage loan interest rates. This will help you get an idea of what the amount of the loan will be.
The lower you can get the loan amount, the better off you are.
Check for loan insurance
Many lenders offer insurance for the loan owner.
Check if your lender offers it. What loan insurance does is in case of death or permanent disability of the property owner, it uses the insurance to pay off the loan. This ensures that your loved ones don’t have to undergo the additional burden if something happens to you.
PNB Housing is one of the leading financial lenders in India. You can always give them a visit for a loan and get great terms from them.