If you are a home loan borrower, you may be seeking high loan proceeds. It is because this can offer you the financial security you require for purchasing a dream home. Whether you are looking out for purchasing a home or a plot through an HDFC plot loan, SBI plot loan, Axis Bank, or ICICI Bank or simply require more money to cover up your expenditures, high loan proceeds can be the correct solution for you. Hence, it is crucial for you to take the time to understand the process in totality. Are you one of those wondering what you require doing to avail yourself of high loan proceeds? You are certainly not alone in this. There are various people present in the market who are anxious to know this.
When you want high loan proceeds, it is crucial for you to become prepared. There are specific things you need to do to ensure that you avail the best possible deal. Here in this post, discussed are a few things that you must do to ensure you get the correct home loan as per your requirement.
Form your creditworthiness
Your credit profile, credit score, and credit record hold a notable impact on home loan eligibility. Ameliorating your creditworthiness is the best way if you need higher loan proceeds. If you are paying loan EMIs or credit card dues on time and in full, this will clearly signify your seriousness towards loan repayments. It results in a better credit score and even makes you eligible to qualify for a higher loan proceed.
Clear all your debt obligations
In case you are already paying your existing loan like your car loan, personal loan, education loan, etc., ensure to try clearing the existing debts to get a better chance at availing higher amount on the home loan. Just by clearing your debt obligations, you will be left with higher disposable income, thus enhancing your home loan eligibility. In this case, it is understood that you will be in a better position to make payment of higher EMI towards a home loan after all your liabilities are over. In this way, you may also become eligible to avail yourself of higher home loan proceeds.
Declare your additional income source
Your eligibility for a home loan enhances if there are any additional income sources besides your regular income. Adding additional income sources, like rent, part-time business, etc., can assist in ameliorating your financial health. Such additional income sources can assist you in getting a higher amount on the home loan.
Also Check: SBI Plot Loan
Avoid switching your job.
Considering you are a salaried individual and planning to place an application for a home loan, then you must continuously work in the organization for a few more years. Frequent job switches have a negative impact on your eligibility for home loan amounts. You must ensure to understand the importance of employment stability when it is about placing an application for a home loan. This not just tells the bank or lender about your employment security but even shows a steady income flow.
It is advised not to panic or hurry up when placing an application for a home loan. You must make proper planning, research, and keep plenty of time in hand before you place an application for a home loan. You must instead estimate your monthly budget and the amount you require to apply for the home loan, compute your loan EMI and figure out ways to how you will deal with your home loan EMI repayments if any financial emergency strikes you out of the blue.
Placing an application for a home loan may be an extremely daunting activity. This requires great effort, time, and, most importantly, knowledge. There are, in fact, many factors to consider and keep in mind before you begin this process.
Now, let’s understand simple tips about how you can save money on your home loan repayments –
Conduct your research well
When you place an application for a home loan, you must ensure to check as well as compare the interest rate, processing charges, and other fees of multiple lenders and HFCs. This procedure will assist you in getting a better interest rate and save you from regretting later not being able to save the additional interest rate.
Additionally, you may view many leading NBFCs and banks offering similar interest rates. Hence, you must even check the processing charges and other linked fees. Always ensure to compare the overall loan proceeds and other expenses. By focusing on the interest rate only, you may miss out on other important charges and fees, which you must not avoid.
Negotiate well with your bank or HFC
In case you are associated with any lender for a long time period and hold a good and sound credit score and record, then you might request the relationship manager or the senior manager of your branch to lower your interest rate. While it is not assured that the bank will lower your rate, they may consider your request based on how long the banking relationship you share and may offer you a better rate.
If your home loan rate is nonnegotiable, then the lender may provide you with some other offer or deal in other products depending on the banking relationships. However, in case the lender with whom you share a good banking relationship agrees with your negotiated terms and conditions, then you may save a lot, and this may prove to be your best deal.
Prepay your loan
Most of you may opt for long-term periods as the home loan proceeds are generally very high, and this assists you in reducing the overall EMI amount. However, it is best if you note that higher tenure means higher interest constituent too. Thus, you must try and prepay your loan whenever you access funds after putting aside adequate funds for financial exigencies. You may prepay your loan either in full or part. Doing so lowers your outstanding principal constituent and even your interest burden.