Before finally deciding on your dream home, it is equally important to check on the right source of financing for your home. That is to say, picking the right lender is a matter of relevance in home buying. With so many non-banking organizations surfaced on the market, it is hard to find the right and the best bank for home loan. Also, what we can see is that there are nationwide lenders in commercial as well as residential space. Many banks will be willing to accept your loan application and willing to provide you with the loans. But the efficiency and transparency of the services depends on choosing the best bank for availing the home loan. That is why choosing the right lender, the best bank for home loan is first and prior most step in home buying.
What all determine a best bank for a home loan?
The list is quite big. That’s all we can say. But there are few ‘first concerns’ in the checklist while deciding on the best bank for home loan. Let us have a glance into those.
1. EMI Holiday Period
The first thing every homebuyer has to check is the EMI holiday period or the grace period over which you are free from the equal monthly instalments. To be more precise, a holiday period is the time before you start the repayment of your EMIs. Enough grace period will give you some time to save the amount for repaying the home loan. The only thing that you will have to understand is that although you needn’t pay any amount, the interest will start to add-on. But, clarifying about the EMI holiday period is important while going for a suitable bank loan. That is why choosing the best bank for home loan is very crucial.
2. Doorstep Online Services
This is, in fact the age of technologies and online services. So, you definitely can prefer a bank which
3. Sanctioning Time
A lot more important is sanctioning time. By the name only I think it makes all clear. Most of the time while in the plan of buying a home, you might be having a time frame. It is equally important to see that the loan is sanctioned swiftly within your desired time frame. Although most of the banks have a time frame for this credit appraisal process, you just go for the one with less time. In this way you can get your loan on time. The best bank for a home loan will be having less sanctioning and disbursing time too.
4. Nil Foreclosure Charges
Make sure that these banks won’t charge you a penalty for prepayment. Most of the time home loans will be long term commitments. But once you get enough amount, you would be wanting to pay the entire loan amount. In that case, if the banks are charging any foreclosure penalties it will cause losses for you. So, ensure that there are no foreclosure charges. In fact, the best bank for home loan comes with nil foreclosure charge always, you just have to find the right one.
5. Flexi Home Loans
While selecting the home loans, you can always go for those banks which provide a flexi home loan. Flexi home loan is a combination of both fixed and floating rates of interest. That is to say, during the initial years the lender charges a fixed interest rate. But the floating rate of interest is only charged on the outstanding loan amount for the rest of the tenure.
6. Home Loan Insurance
Home loan insurance is one other factor that determines which is the best bank for home loan. This is something that covers the outstanding home liability if the borrower happens to die during the loan repayment term. It in fact is useful if you do not have ample down payment as well.
7. No Hidden Charges
Ensuring no hidden charges are there in the limelight is equally important. As many banks are trying to extract more money from you, it is necessary to ensure that they don’t as for any additional charges. While going through the loan contract only, you will have to carefully analyze it and see if there are any conversion fees, document retrieval charges or documentation charges. You can ask for the full details of the loan product so as to read between the lines and understand any such hidden costs. It is always advisable to check prior to availing the loan from the bank. In this way, you can save much of your money, only if you choose the best bank for home loan.
Conclusion
What we can conclude is that home buying is in fact a long journey. But finding a suitable financing organization, preferably best banks for home loan will rule out much headaches. The only thing is that you will have to go for a thorough check through the entire processes before deciding on. By checking and ensuring all these above factors, one can have an easy home buying process.
