Home buying is a significant event in an individuals life. Choosing the right home not only requires a lot of planning but also comes with its own set of responsibilities. Home finance is a convenient way to fund financial requirement needed to own a home. But before applying for home loan, it is important to keep in mind equated monthly installment EMI and rate of interest ROI. Banks and NBFCs today offer a variety of home loan options but it is always good to point tips what could be the best tips for you to get the lowest interest rates on home loans.
CIBIL score is one of the most important factors while determining home loan eligibility of an applicant. A good CIBIL score raises chances of borrowers getting a loan at attractive rates and EMI's. Paying regular credit card bills, and not delaying other loan EMIs helps to improve CIBIL score.
It is advisable to save money to make down payment while applying for home loan. Down payment reduces the burden of high EMI and ROI since a significant part of repayment amount already gets paid.
Debt-to-income ratio is an important factor while applying for any home loan. Debt-to-income ratio is defined as the ratio of income compared to the overall EMI amount. It is always advised to keep EMI amount less than monthly income to have convenient loan repayment process.
Stable Job & Source of Income:
Banks and NBFCs consider applicants employment stability and income to calculate his/her home loan eligibility. Applicants with a regular source of income and stable job have better chances of getting a home loan at lower interest rates.
Doing some study before applying for home loan helps to ease the process of repayment. Keeping some useful points in mind help significantly to get low home loan rates.