4 things you should consider before getting a home loan in Delhi

Having one’s own home is a dream that every adult has, and people work hard for hours and hours all their life to fulfil it! But getting a home in the metro cities isn’t easy. The rates are through the roof and just keep increasing. Therefore, to think that you’d someday be able to save money to buy your own home is a daydream. The only feasible way of fulfilling your dream is to apply for a home loan in Delhi. You can either go for an unsecured loan or you can take a loan against property in Delhi as well. But there are a few things that you should be wary of while applying for a loan. Let us take a quick look at those.

Always ensure you have a good credit store

Your credit score plays a major role in determining whether or not your loan application will get accepted or not. Your credit score is formulated depending upon your payment records regarding your EMIs and other dues. If you have a good credit score, it means that you are a trustworthy borrower, and your likelihood of getting the loans increases. Not only this, if you have a higher credit score, you also may also get the loans on lower interest rates.

Choose appropriate EMIs and tenure

Once you have decided on a property, you need to calculate your budget and plan for the loan. The reason for doing this is that you shouldn’t take a penny more than you need otherwise you’re going to have to return that unused money with interest. Then choose an EMI and tenure accordingly: at first, going for a shorter tenure might make sense, but you need to be very careful because if a financial crisis arises in the future, you’d be in big trouble as the EMIs are quite high for short tenure loans.

Be ready with the documents

Before you approach the lending institution to get the home loan in Delhi or any other city, you’ll need to ensure that you have a certain list of documents at your disposal. They include:

·         Your income tax returns for the past 2 to 3 years to ensure that your taxes have been filed.

·         A PAN card.

·         An Aadhaar card.

·         Bank statements for a past six to twelve months.

·         If you are a salaried individual, you’ll be required to submit your salary slips for past three months as well.

·         A self-attested photograph pasted on the filled application form for the loan.

Compare

Once you’ve made up your mind to take the home loan in Delhi, you need to compare the different lending institutions. There are thousands and thousands of lenders and you need to find the one that understands you the best. Consider your circumstances and then arrive at a decision. For instance, it might be possible that an NBFC might be giving you a faster disbursement and easier application as compared to a bank. Study your options and then only arrive at your decision. This would save you a lot of headache and hassle in the future and you wouldn’t have to regret your decision. Buying your own home is no small step, and as such, it shouldn’t be taken without prior deliberation.