Applying for a Home Loan? Consider these 5 tips

From checking your credit score to understanding the most flexible EMI options, here’s what you should keep in mind before purchasing your dream home

Following the COVID-19 pandemic, the need to own a residential property has been sharply felt among Indians, as well as NRIs. With a number of people opting for work-from-home and online school or college education systems, the average Indian is now sensing the need to own a home. Given that the home loan rate of interest is the lowest in almost a decade, this may be a great time to buy your dream home. A number of banks and NBFCs have made home loan applications easier and quicker, in an effort to boost home loan applications in the country. If you are considering applying for a loan to buy a property, these are some tips you must consider -

1. Check your credit score

Your home loan application is likely to be cleared quickly, without much hassle if you have a high credit score. Your credit report is a reflection of your credit worthiness and a high score indicates low risk for the lending bank. It is always a good idea to opt for a free credit report from CIBIL and add it to your loan application. Remember that you are eligible for one free credit report per year.

2. Transparent fees and charges

Most loan applicants understand that rates of interest may vary according to the strength of application, tenor etc. Processing fee and other charges may also vary. IDFC FIRST Bank home loan offers a special processing fee of INR 10000 + GST for salaried employees and INR 20000 + GST for self-employed professionals. Find out about minimal fees and charges before you put in an application.

3. Tailor-made loans

You can opt for tailor-made home loans based on your requirements. For example, if you are planning to construct a house on a plot you own, you may want to talk to the bank about a possible top up at a later date. This can allow you to construct an additional floor if the need arises subsequently. 

4. EMI

You can opt for a flexible tenor, for fixed or floating EMI and a number of other flexible offers, depending on your eligibility. The bank will be able to assess your needs and suggest if a moratorium (paying only interest in the pre-EMI period) will be advantageous or if you are eligible for pre-closure of your loan etc. These are all advantages you must make use of when applying for and managing your home loan.

5. Loan transfer

As a home loan seeker you can also shift or transfer your home loan to a different lender or bank if you find it advantageous. For example, if you find that the IDFC FIRST Bank home loan interest rate is more to your liking, you can transfer an existing home loan from a different bank to IDFC. This process can be done online with minimal effort. Talk to the bank’s customer service department for help with loan transfer.

Taking a home loan is often a big financial decision. Our customer service and branch officers are adept at analysing your needs and will help you pick the right home loan product leaving you stress-free to own your home.  

Apply for an IDFC FIRST Bank Home Loan or Home Loan Balance Transfer today! Click here. Avail Home Loan at interest rates starting from 6.9% p.a.*. There’s a special Processing Fees @ ₹10,000 + GST for salaried individuals and ₹20,000 + GST for self-employed individuals.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.