About Housing Finance
In India, when a middle class family relocates from one city to another for any professional reason then owning their own house is the biggest challenge for that person. Today builders are constructing several apartments or flats for people at reasonable rates.
This helps an individual choose a property of his choice. Alternatively, a person can also go for purchasing a piece of land and then construct the house on it.
Today selection of the best house in the best location is quite difficult. Every person has a dream to buy a house in a location that has all facilities like hospitals, schools, shopping malls and parking facility.
Nowadays, almost all banks provide home loan, which helps the person to buy a home without any botheration. Person needs to spend a lot of time on the internet to choose the best lender. Person should compare the interest rates, tenure period and loan amount across all banks.
Person should read all the terms and conditions of the bank, before applying for a home loan. Person can also apply online for a housing loan. Home loan is a kind of mortgage loan.
Following are some factors that will help a person in choosing a good Housing Finance product:
1. Compare interest rates wisely
Banks provide housing loan at teaser interest rates. In this, a person initially pays a low interest rate on the loan amount, but gradually the rate becomes comparatively higher. Person should be aware of the prevailing interest rates provided by the bank, before applying for a home loan.
Banks normally provide interest rates in two forms, which is Fixed interest rates and Floating interest rates. In Fixed interest rates, person needs to pay a constant rate throughout the loan tenure period. In Floating interest rates person needs to pay the interest rate according to the market fluctuation.
2. Negotiate for the lowest processing fee
Banks levy 0.5% to 1.5% of the loan amount as a processing fee. An applicant has to pay the processing fee at the time of applying for a mortgage loan. Banks provide discounts on processing fee to the borrower who is working in a MNC company or super A company.
3. Verify the bank disbursal process
Private Banks have a simpler disbursal procedure as compared to the government banks. If a person wants to purchase a house under construction, the builder will demand money as per the completion of the house. In that situation, if a bank is unable to approve your loan within the required time, then you should go in for a private bank.