To Compare Or Not To Compare – Home Loan Interest Rates

Online comparison of home loan interest rates has been a crucial factor in selecting a lender. Every borrower seems familiar with this concept. Most borrowers compare rates and apply to the housing finance company offering the lowest home loan rates in India. But, there is another theory is making rounds of the online world of forums and blogs. It suggests that it’s useless to compare home loan rates. The primary reason for this theory is that most borrowers do not have a chance of getting advertised home loan interest rates. Lenders consider several factors while approving home loan and making a home loan offer. For example, credit history, professional ability, and employer’s credibility, etc. So, you may receive an offer with higher home loan rate. Both points of views have merit. Here is what you will need to know to decide.

Why compare housing loan interest rates?

Most housing finance companies in India want to put their best foot forward to attract most customers. These are probably their best interest rates available. Most borrowers can compare these home loan interest rates in India. Then get a list of housing finance companies offering the lowest rates in the present market scenario. This can be the best way to narrow down the list of lenders to few choices worth consideration.

Why “not to compare” housing loan interest rates?

There are two steps in any home loan process after you submit your home loan application. Firstly, if you qualify for the said amount, you receive a home loan offer. Secondly, you sign a home loan agreement. Your home loan application and home loan agreement are the best chances to getting a rate you want. You can include the documents that present you as a desirable candidate for a loan. Then, once you receive an offer. You can negotiate the interest rates now because the lender has expressed the desire to accept your application.

What should you do?

You can probably use the best of both worlds. So, you can limit the usage of online comparison to identify the best choices available in housing finance market. Then, you can focus on making most of the non-comparison strategies to avail the best home loan rates in India. You can also keep track of the news about latest home loan offers. It is an excellent alternative to online comparison of up-to-date interest rates.

You have a chance of getting the best home loan in India with the right combination of these strategies.