A home is a place where our family lives, a place we share our happiness and our sorrows. Owning a home is everyone’s dream. However, the purchase of a residential property can be challenging for many. It indeed may require months of planning to materialize your home purchase.
Several banks extend Home Loan schemes on easy terms so that you can fulfill your dream without a lot of burden on your finances. They are offering easy instalments with low-interest rates, such that many can utilize this opportunity and fulfill their dream of constructing or purchasing the house.
Like other loans, you require to fulfill certain criteria, before Applying for a Home Loan. At the same time, you must also learn about all the factors that the lender considersbefore approving your Home Loan.
Credit score plays a major role when you apply for a bank loan. Your credit score cites your previous repayment behaviour to the lender. If your score is good, it gives the lender confidence that you will pay your instalments on time in the future as well. If you do not have any previous loan, they consider the pattern of payment for your Credit Card and Mobile Bills. There are several ways that can help you increase your score. Just be regular with your bill payments or instalment payments from now and your score will gradually improve.
Age is another major factor that matters to your lender when you apply for a Home Loan. If your age is less, lenders feel you have a lot of time for repayment. Thus the lender can approve the plan wherein you can pay smaller instalments over a large tenure.
Your salary is one of the most significant factors that lenders consider. For, it is the financial source to support the loan repayment. If your salary is high, your chances of getting a Home Loan sanctioned are high. Also, you may be approved for a higher amount with a decent take home salary.
If you have an earning spouse, both of you can jointly apply for the loan. With combined income, you have more chances for getting a loan approval for a higher amount.
Most of the Home Loans accept collateral when your salary is low, and your requirement is high. You can pledge a property, as collateral to improve your chances to get the loan approval.
Consider following points before choosing a bank for Home Loan. The procedure and other criteria are different for each bank. Generally, some aspects that have to be taken care of are-
The interest rate of the loan- If the rate of interest on Home Loan is high, you may repay far higher than what you have borrowed from them. Home Loans are long term obligations, and thus, you must carefully choose the bank offer.
The tenure of the loan- Select the period of the loan, in which you can comfortably pay back the amount. You should avoid opting for too small EMIs and extensive loan tenure as in both cases; you will pay a lot on the interest component. Besides, the loan may appear like a never-ending financial burden in the long run.
Whether you are considering a new Home Loan from Bank of Baroda or considering to transfer your existing Housing Loan to Bank of Baroda, the following review on BoB Home Loan will help you.
Bank of Baroda Home Loans are packed with various exclusive features and benefits for people who aspire to buy their homes. They offer housing finance for several purposes such as the purchase of a plot, buying a flat, construction of a home, or even extending your residential property. They also extend a Home Loan facility for NRI. Their interest rate on Home Loan starts at 8.7% onwards. The application process is quite simple, with minimum documentation needs.
A pre-approved loan is a conditional commitment for granting you a mortgage. This plays a major role when you are applying for Bank of Baroda Home Loan. This helps you get an estimate that can be further used to either increase the loan or reduce the cost to fit the loan amount. If you are pre-approved for a home loan, you will get the following information-
You can understand the procedure in which you need to apply so that you will not be confused at the last minute.
It helps you to understand the processing fee and other fees involved in the process of application for a Home Loan.
All the process gets finished here, making you ready for the actual loan and also gives you an estimate whether you qualify for the loan or not.
It helps you get a better idea about your financial commitment before you enter into it, and this helps you a lot to see if you are ready for it.
Pre-Approved Home Loans from Bank of Baroda provides you with in-principle approval, which helps you identify the cost with which you can purchase or build a house, and finalize it. It also opens great flexibility, so that you can bargain with your supplier or builder. You can also be assured about an amount you get as the loan. The validity of the in-principle approval is four months, which starts from the date of its issue. You will only be charged with the processing fee, which is Rs. 7,500 besides the applicable taxes. All the remaining charges can be paid only after the approval of the loan.
Here, we can say that the interest rates of the bank of baroda home loan are very reasonable and you have very flexible options of repayment. Especially the pre-approved a loan of Bank of Baroda, it helps a lot of aspiring people to proceed further, without any confusion or hesitation. You have to know your eligibility and plan in such a way that your home needs are satisfied without putting much pressure on your regular financial requirements.
Also Read: 5 Best Home Loan Providers in India
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