Importance of interest rates on your home loans
In today's inflating times and prior financial commitments, it’s nearly impossible to finance your house without borrowing money. And home loan would be an ideal choice because today there are reputed lenders who offer great deals and discounts to the potential customers in India. However, when you take a home loan, the most important consideration is the home loan interest rate and the entire financial borrowing revolves around it. Different lenders will offer a different rate of interest rate. Although, it won't seem a significant one, however, for long-term financial borrowing like home loan even the slightest variation could make the difference on the overall amount.
Borrowers are very keen on availing finance and thus they feel whatever particular lender offer it’s the best call off for them. However, it is not as such if you window shop home loans you will find some lucrative deals. You can try and negotiate with the lenders to reduce the home loan interest rates as much as possible to crack the best deal. With a good credit score, income source, job stability, more down payment you can negotiate with them for low-interest rate deal. To help you negotiate properly, here are few tips and tricks:
Firstly Gather Information
Don't just rely on the first lender you come across. Instead, gather as much information as possible. Try to understand about the home loan interest rates, the technical jargon, check the type of interest rates in the market, find out your loan eligibility, talk to the financial expert, etc. It will prove to be an effective strategy to negotiate for a better deal. All this information can help you decide on the loan amount, interest rates, processing fee and other charges associated thereby making it easier for you.
Documentation
It's an integral part, so make sure you have all the documents handy with you so that it won't put a full stop to your dream anywhere. Ensure there are no discrepancies as far as documents are concerned. Be honest if you have any form of an existing loan, repayment history, etc. and discuss your financial position openly with the lenders. If you have a plan discuss with them, being honest would be the key to build confidence amongst the lender who will open up better negotiating opportunities for you.
Check your CIBIL Score
When you apply for any form of loan in India, it’s the most important factor lenders will adjudge your loan upon. It helps them to decide whether they should give go-ahead for your loan application or not. It’s a figure that ranges from 300-900 assigned by credit authorities in India based on your repayment history, payment defaults, etc. If your score is above 750+ it means you carry a lower risk for the lenders as you're disciplined enough to make timely payments. It can be an excellent opportunity to get the apnapaisa home loan interest rates reduced.
Loan Timing
Festive Occasions will help you crack the best home loan interest rates deal; another wise time would be when financial institutes are coming up with tie-ups, promotional offers and when they have to meet the sales targets on a monthly basis. Apply for a home loan while nearing the end of the month when employees are willing to achieve their target. You can manage to crack some good numbers that would prove affordable on your wallets in the long run.
Bundle your loan request
If your relatives, friends are willing to take a home loan, you can bundle up your request with them. As the lender is offered more business opportunity they might reduce the home loan interest rates for you. Also, your employment status and additional income source like spouse/parent’s earnings can help you reduce the interest rates.
