The process of buying your own dream home is an important event in everybody’s life. Buying a home not only involves a lot of planning but also comes with a lot of responsibilities.
A home loan is the best way to meet your financial needs and get your own home. It is important to look at monthly EMI and interest rates before availing of a home loan.
Due to the great variety of home loan options and varied interest rates, it is important to follow some essential tips that help you to avail lowest home loan interest rates. Read the complete guide to learn all the tips to get lower home loan interest rates.
- CIBIL Score
Credit history and CIBIL score are the most important factor to consider regarding a home loan. CIBIL score is an important factor in determining whether you are eligible to avail of a home loan.
A good CIBIL score increases the chances of borrowers to avail of a higher amount of home loan at lower interest rates and flexible EMI. It is suggested to pay the bills on your credit card regularly and pay the EMI of another loan on time to improve your CIBIL score.
- Down payment
It is suggested to save money by making the down payment while getting a home loan. Paying the down payment helps reduce the burden of ROI and EMI since the important part of the repayment amount is already paid.
- Debt to income ratio
Mostly, the applicants are not much aware of the debt to income ratio while applying for a home loan. But there is a need to consider this important factor.
Debt to income ratio is a significant factor you should consider while applying for the lowest home loan interest rates. The debt to income ratio is the income ratio compared to the total EMI amount. It is suggested to keep the EMI amount more than the monthly income to make the loan repayment process convenient.
- Source of income and stable job
Banks consider the current income and stability of applicants to decide their eligibility for providing a home loan. It is important to have a stable job and steady source of income if you want to become eligible for a home loan.
Applicants with stable jobs and regular income sources improve their chances of getting approval for the lowest home loan interest rates.
- Calculate the amount of EMI
Banks provide the home loan EMI calculator on their sites so that the customers evaluate the EMI amount. It will help you to select the EMI option on the loan amount. It will also permit you to plan your expenditures smartly as you know the precise amount you have to pay.
So, it is suggested to calculate the EMI amount on loan value before availing of the home loan.
All the above tips help you to get the lowest home loan interest rates. If you have a good credit history and repayment record, you will definitely get the home loan at a lower interest rate from the lender.