Buying a home is one of the most important and biggest decisions of your life. It is one of the most expensive things you will buy in your lifetime. Once you find a house that you always dreamt of, the next important step is to find a lender who can provide you finance for its purchase. There are multiple things to consider while choosing a lender for your home loan, such as interest rates, eligibility criteria, processing fee, application and approval procedure, etc.
MOST READ: HACKS TO GETTING HOME LOAN APPROVAL IN RECORD TIME
So, before you apply for a home loan, here’s a quick guide on how to choose the best lender from the lot out there.
Check the Interest Rate
As a borrower, your first instinct would be to pick a lender that offers the lowest interest rate on your home loan. After all, even a slight difference of a few points percentage can reflect prominently on your monthly instalments. However, comparing the interest rate is only one way of looking at a home loan offer. Lenders levy several other charges while giving you a home loan, including processing fee, documentation fee, technical assessment fee, etc.
You may use a home loan EMI calculator to calculate your EMIs, know your applicable interest rate, and choose a loan tenor. However, apart from checking the interest rate, keep in mind the other charges as well and see if the lender offers any waiver on some of them. Select a combination of best interest rate and reasonable extra charges to make a cost-effective choice.
Check the Credit Score required by the Lender
A borrower’s credit score is one of the key determinants in ascertaining your loan amount, interest rate, and chances of loan approval. Credit score is a score between 300 and 900, which lenders use to determine your creditworthiness. A score from 550 to 649 is average, 650 to 749 is good, and above 750 is excellent. The higher your score, the better chances you are the changes of approval. You can check your credit score here for free.
You need to find a lender that does not have unrealistic expectations of credit score. A score of above 750 is excellent and applicants with this score are rarely denied a loan approval. However, several other factors affect your chances of loan approval, including your age, income, employment history, other debts you owe, and other loan applications you made recently.
Ensure Trustworthiness of the Lender
The best way to ascertain the trustworthiness of the lender is through their reviews and getting in touch with the people who have already borrowed from them. If a lender fails in the market, the case will impact you as well in the short and long run. Therefore, it is important to understand the lender’s financial standing and their experience in the industry.
Go through their website and check information about their team, range of services, motivations, and objectives. You may also get in touch with their customer service centre to see how dedicated they are towards their service and clients.
Know the Loan Application and Approval Process
Many people resist applying for a loan because they think that the loan application and approval process is too cumbersome and lengthy. However, now the monopoly of banks has been broken and many NBFCs have come forward with easy to follow and quick processes for customers. You can apply for a home loan online from the comfort of your own home. Just provide your phone number here and a customer representative will get in touch with you to discuss the details. If everything seems fine, you get your loan approval in no time.
Go Through the Eligibility Criteria
The eligibility conditions of the lender should be easy to meet. For example, while applying for a home loan with Clix Capital:
-
- You must be at least 18 years old at the time of applying for the loan and maximum 65 years old by the end of the loan term.
- You must be a salaried or a self-employed individual
- Your household income should be at least ₹ 3 lakhs per annum
If you meet these eligibility conditions and are looking for a home loan, you can apply  .
Enquire About the Documentation Requirements
Traditionally, banks and money lending institutions required quite a few documents from any borrower interested in a home loan. You had to collect the required documents and submit them to the lender, along with their copies among other things. With time and with the emergence of digitally inclined NBFCs, documentation requirements have lowered and your loan application can be completed much quicker. When you apply for a home loan at Clix Capital, you only need to arrange the following documents:
-
- Completely filled online application form
- Passport-sized photograph
- Identity Proof – Aadhaar card, Pan card, or Government ID for government employees
- Address Proof – Aadhaar card, passport, voter ID, driving license, or utility bills for the last 2 months
–For salaried individuals
-
- Last 3 months’ salary slip
- Last 6 months’ bank statements showing salary credit
- The latest copy of Form 16
–For self-employed individuals
-
- Business profile
- Last 6 months’ bank statement
- Last 2 years’ Income Tax returns & financials, including balance sheet, Profit and Loss accounts
If you have these documents, you are ready to apply for a home loan.
Read the Loan Terms and Conditions Carefully
The lender should offer a decent loan amount that should meet the cost of your selected property. With a loan amount of up to ₹ 1 crore, you must be in a position to buy a nice home of your choice. When you have 25 long years to repay your home loan, you don’t need to worry about the financial crunch in between. Also, have a look at the type of interest rate offered by the lender. With the choice of floating and dual interest rates, you can either choose a floating interest rate through the loan term, or a fixed interest rate for the first 2-3 years and then a floating interest rate.
Apart from the above conditions, also go through the loan document carefully, especially the fine print present on the side or bottom.
Check the After-Sales Service of the Lender
Borrowers must judge a lender based on their after-sales service. Approving a home loan application is just the beginning. There should be more than one way to contact their customer service representatives, including phone, email, and chatbot. When you call them, they must patiently listen to your concerns and provide you the best possible solutions. In case of any policy changes, they must proactively convey them to you.
How to Apply for a Home Loan at Clix Capital
Clix Capital has an extremely easy and straightforward loan application process. Here is a step-by-step guide:
-
- Fill up the Home Loan Application Form
- Enter your name, email address, and pin code
- Enter the desired loan amount
- Enter the OTP you receive on your mobile number
- Our customer representative will get in touch with you
- If everything seems fine, you will get your home loan approval soon
Planning to buy your dream house using a Clix Capital home loan? Use the Home Loan EMI Calculator to calculate your loan EMIs and select the best loan plan from Clix Housing. Click here to apply for your home loan now.
For any queries, find us on Facebook, Instagram, Linkedin, Twitter, or WhatsApp
You can also reach out to us at hello@clix.capital or call us at 1800 200 9898
