The Secret behind Getting the Best Housing Loan

Everybody dreams of the perfect home in which they wish to live in some day. When the time is right, you can easily build or purchase your dream home. However, in today’s world, with rising real estate values, it is nearly impossible to purchase your home with your own funds. With the housing loan, you can easily purchase your dream home in mere days and pay off the amount as per your ease and comfort depending on the home loan interest rate you have selected. So what is the secret to get the best home loan deal? Discover them and use it to your advantage.

Eligibility:

Your eligibility plays an important role in determining your housing loan. There are certain factors that influence your chances of getting the advance credit amount you require. One such factor is your income. Normally a bank will keep the EMI to income ratio at 30 to 40%. If you opt for a joint income the percentage will change. Also, if you have additional loans to pay off, you eligibility will come down to match the EMI and income ratio. The tenure also plays an important role. The longer is the tenure period, the more is your eligibility. Another factor is the interest rate. If the home loan interest rate is high, then the eligibility is lower. This also works vice versa. Once you satisfy the criteria for the eligibility, you can get the financial credit amount you require.

Interest Rate:

The interest rate is one of the important factors that influence your housing loan and monthly EMI. There are three types of home loan interest rates you can choose from, namely, fixed, hybrid and floating interest rate. Fixed rates are stable and higher than any other rates in the market. But, floating home loan interest rates are fluctuating all the time. With hybrid loan, you can choose to repay a part of loan with fixed rate and other part via floating interest rates. The floating rates are the lowest. Thus it is an ideal choice at the moment.

Banking Institutes:

There are various banking institutes that offer different rates and offers. Some of these offers will suit your needs but with a longer duration, while others will provide a tight deal, but with a shorter period of repayment. Before you apply for the financial aid, always do a comparison of all the offering by the different banking institutes. See what they are offering, short term as well as long term. Additionally, if you have a previous relationship with the banking institute, you can always negotiate the rates too.

These three ingredients, if chosen well, will allow you to buy your dream home with an affordable housing loan.