5 Things you should check before purchasing a Home Loan

All of us wish to purchase that dream home someday.When the time comes nearer, we obviously search for various home loan options. With a number of banks providing home loans in the market, it can be quite puzzling to decide on a single one. It is important to engage in a good research on the home loan providers. This is because a home loan purchase is a long-term affair, therefore, good services is an important feature to look at

Here are a few prerequisites you should keep in mind before purchasing your personal haven:

Approval
Firstly, you should know whether or not you are an eligible for a home loan as well as the specific loan amount you stand eligible for. For example, if your monthly income is Rs.50, 000/-, you will be eligible for a loan of up to Rs.30,000/-. If you are married, you can also purchase a joint loan. This is because both your incomes will be merged together as one. So ensure you get an approval from the bank before searching for a house. 

Research
There are a number of online portals that can help you search for that ideal home. You can simply enter the specific requirements such as the preference of location, type of housing, as well as your budget. You will then be suggested houses by the portal that fit the requirements listed by you. Do not feel lazy to search as it is extremely essential to approach an authorised builder. Also do a background check once you shortlist a place. 

Location
Before purchasing your dream house, ensure that you choose an area that is accessible. It is more sensible to pay a little more money than commute every single day to a place that is away from the central landmarks. Remember not to select a place that is situated in the low-lying areas as it gets flooded very soon during the monsoons. Keep in mind a reasonable altitude.

Hidden Charges
There are many possibilities of banks reducing the home loan interest rates as it makes it more attractive for customers. Check the hidden charges that most of the banks do not reveal in the beginning such as administrative fees, processing fees, legal fees etc. Check with the banks if you have shortlisted about the total cost including the hidden charges. Make a selection after drawing comparisons. 

Equated Monthly Instalments
It is the amount that is payable by you to the bank every month. This EMI is dependent upon the duration of the loan purchased by you. If the EMI to be paid by you is unmanageable, you ask the bank to increase the duration of the home loan which will lead to a reduction in the EMI. Ensure that you only purchase a home loan when you can comfortably pay the EMIs as it is a long-term commitment. You can also make use of a home loan EMI calculator to calculate your EMI