How to choose your preferred interest rates on home loans?

A house is where your heart lies. Owning a home is one of the biggest financial goals for millions who wish to have their own abode someday. Till a few years back, buying a home was a daunting task wherein the property rates are already skyrocketing, no proper financial resource for funding and even if you find one you had to go through the tedious application and verification process. Traditional finances were way too costly in terms of extremely high-interest rates, stringent payment measure and no flexible for repayments. Borrowing from friends and relative has a chance of creating a rift in the relation. Thanks to the efforts taken by leading private finance companies and banks in India that fund your house with low home loan interest rates, and customized solution to turn your dream into reality.  Thanks to internet facilities you can compare quotes, apply for a home loan right from the cozy corners of your offices or rental houses. You don't have to visit any branches to collect the form, fill up, attestation of copies, submit with demand draft and finally wait for almost a month to know the loan status. The process was tedious, time-consuming and full of hassles.

Through online service, your loan application can be sent with just a few clicks on your computers, smartphones or laptops. You can visit comparison sites to compare loan with attractive home loan interest rate deals, low processing fee, affordable monthly installment, and flexible repayment options. Most lenders have taken a step and introduced mobile app via which you can compare rates, check eligibility, apply for a loan, track your outstanding balance as well as make repayment through these mobile apps. You can avail finance as per the home loan interest rates offered such as fixed or floating rate providing various choices to the borrower.

Because of the stiff competition amongst the pioneer players, lenders are offering a loan with customized solutions, discounts, schemes, and competitively low-interest rates. They've come up with various schemes to lure potential borrowers or retain the existing one instead of opting for a home loan refinance. One needs to be prudent while choosing their home loan scheme and choose the one that offers low home loan interest rates and affordable EMIs on their wallets. Therefore, experts say to do a thorough comparison by talking to a home expert, visiting online or personally going to the branches to take quotes.

It's important you do a thorough background check before applying for housing loans such as income source, an additional source of income, EMI paying capacity, Margin money savings, and your credit score. Your credit score, income source, age, and job stability plays an important role in negotiating with the lenders to reduce your home loan interest rates. Today, with online facilities choosing a scheme and compare housing loan offers from different lenders have become quite easy. Instead of physically visiting the branch you can apply for a housing loan at the comfort of your homes or offices. When an individual applies for a home loan, there is no 100% loan approval, you need to show funds of margin money of around 20% being ready in hand before applying for a loan. Make sure you have saved at least 15-20% and have little extra to cover a few months of installment. It's better to be safe during tough times like recession, job loss, or unable to earn due to health risks, etc.

It's better to be well prepared with some savings to cover financial difficulties in the next couple of months. Eligibility of housing loan depends on the individual's repaying capacity. It is based on various factors like monthly and annual income, savings, credit score, working experience, age, qualification, number of dependents and other sources of income including spouse income. Housing loans are available at different interest rates which depend on repaying tenure.