3 Smart Tips to help you Save Money on a Home Loan
Home Loan is a crucial loan decision which a person has to make when he is in need of finance for his home. There is a long list of questions that come to mind and this creates doubt. At this time it is very important to think through all options and take a smart decision.
Following are some smart and valuable tips which will help you save money when you are taking a home loan:
- Improve your credit rating:
Knowing your credit rating is very important for every borrower. Banks would lend you money seeing your credit ratings (which determine your creditworthiness). There are many Credit Rating Bureau agencies in India and the most popular of all is CIBIL. In order to be eligible for a Home Loan, your CIBIL Score should beat least 750. In case your CIBIL score is less than this, you should wait and take guidance on improving your score. The best way to improve your credit score is by building a credit history, making your payments on time and having a record of borrowings and payments.
- Research the market:
Before selecting a lender or a loan provider one must study the features of the products offered by each lender, analyze the available information and find the most suitable one.
Research done should be across all parameters linked to a Home Loan. Compare interest rates, extra charges to be paid, mode of payments, eligibility criteria,documents required, prepayment charges, processing fees etc.
- Boost your eligibility for a loan:
You can improve your loan eligibility by including a co-applicant and taking a joint loan. Most lenders consider the income of spouse and close family members by taking them as co-applicants to the loan. Doing this will give you a better choice in taking a loan.