A home loan is a big commitment that is only second to deciding your life partner. It’s a long-term responsibility. You must ensure that you have the necessary finances to make the repayments right on time over the entire duration of the loan tenure. With that said, do not let the time frame and responsibility intimidate you. After all, there is immense happiness in living in a home that you call your own.
Here are five simple hacks that will help you save a significant amount of your hard earned money when repaying home loans. Make use of these tips and live life stress-free.
#1: Maintain a good CIBIL score
Before you apply for a home loan, you must ensure that you have a decent CIBIL score. Also, it’s helpful if you have not availed any other loans like personal loans, car loans for the previous six months. Check your CIBIL report (For instant free Credit score report) and verify that all the details mentioned there are correct. Iron out any discrepancies as it can reflect poorly on your score.
Once you have a CIBIL score of 750 or more, you can begin your home hunting with confidence.
#2: Don’t Skip on Research
Needless to say, you must carry thorough research of all the new home loan deals and offers in the market, before you pick the best home loan for you. Most banks entice their customers with exciting deals on home loans, especially during the festive season. Keep an eye out for these and try to make the best use of them.
Ensure that you are aware of all the fees, charges and other features of a home loan before you decide to take up one. Get answers to all your queries so that you aren’t caught unaware once you have signed the agreement.
#3: Make use of the Power of Negotiation
During the loan approval process, you’ll be assigned to a particular loan officer in the bank who will be your point of contact for all details and queries. Most loan offices corner you to make you take up the offered interest rate. However, remember that interest rates are highly negotiable and benefit from your credit scores to arrive at the best home loan with a low-interest rate that suits you.
#4: Try putting down a higher initial payment
If you have saved a considerable sum of money to buy a home, then it’s a great advantage for you. A higher down payment ensures that your EMIs are lowered, and your financial burden gets reduced significantly. So, try to give it your best shot.
#5: Don’t reduce your EMIs with the reduced rate of interest
During the tenure of your secured home loan, if you find that interest rates are down, don’t be tempted to reduce your current EMI. On the other hand, if you stick with your current EMI, you will end up saving in the long run.
A roof to call your own is a cherished dream for almost everyone. Of course, shouldering a home loan is tough. But, with the help of these clever hacks, you can get a home loan without burning a hole in your pocket.
**Counsel with Antworksmoney’s home loan service for best home loan interest rates.