Ideal Steps To Negotiate Your Housing Loan Interest Rates

For most people, it is a shock to see the interest rates on theirhome loan offer letter, as they are not the same as the advertised ones. For banks and housing companies in India, it is an accepted practice to advertise the lowest home loan rates that they can offer. However, every borrower may not get an opportunity to borrow at that rate.

Thus, you must prepare yourself to negotiate for the lowest possible home loan rates for your house. It is not customary that every borrower gets the best housing loan interest rates. But, a smart borrower can use some of the following ideas to ensure that he can manage the best possible rates for his home.

Research:

Your research can never be enough. There are always going to be additional factsthat may seem beneficial for your home loan interest rates. You need to understand floating, hybrid and fixed interest rates, factors that influence the housing loan interest rates and much more. You will need to use the home loan EMI calculators in India to understand the way fluctuations in home loan rates can affect your EMIs or the home loan tenure that you can realistically aim for based on the rates you get.

Documents:

You will need to improve your credibility and repayment ability while applying for a home loan. The smart strategy is to gather all the relevant documents that you can present while applying for the home loan. However, if you need to lower your credit score, or repay a personal loan, the process will need more time. An ideal option here is to apply for housing loans from several lenders and then negotiate for better home loan rates once you have interested lenders. It should be noted, though, that this process may find you incurring additional application costs.

No matter the circumstances, you will always need documents to prove that you are a dependable borrower. If you are a salaried employee, you should ask for an appraisal letter. If you are in contract-based employment, you will need a recognized and full-time employer. If you have any pending credit card debts, you must repay them. These documents will come to your aid later on.

Consultation:

This is the last and most important step. In spite of all the research and having the right documentation in place, you will need to present your case, if you do not have the desired home loan rate. Your approach to a branch manager or the loan executive has to be effective enough to get the ideal home loan interest rates in India . Therefore, consult a personal finance expert or a home loan specialist; who can help you to understand how to present your case effectively.Then, you will be ready for the negotiation.