Person can do a
detailed research on the different lenders online. It helps the person to
choose the best lenders. Person can apply online for home loan. Person can also
read the testimonials of the existing persons. Getting a loan is depending upon
the repaying capacity of the person. Banks also check the credit history of the
person. Person having decent credit score can get a loan at the best rates.
Person having poor credit score can get a loan at the highest interest rates.
Banks first check the eligibility criteria of the person and their documents.
Documents include: Employment proof, age proof, Income proof, bank statement
and salary slips. Person has to repay the loan
in EMIs.
Home loan works when a
buyer obtains a loan from particular financial institution. These organizations
can be a mortgage company, lending corporation or any bank. After selecting the
best lender that provides the best offers, the person can then make an
agreement with the company. Person can then get money with certain interest
rates. Person can contact the company that if he fails to pay back the loan in
given period, company has a right to sell the property.
Interest rates on home
loan vary from bank to bank.
There are two types of interest rates: Fixed rates and Floating rates. Fixed
rates mean the person has to give same interest rates for the entire tenure
period. Floating rates means interest rates vary according to the market fluctuation.
Sometimes rate of interest increase and sometimes rate of interest decreases.
Fixed rates are best as compare to the floating rates. Person can also check
the processing fee provided by different banks. Banks also charge prepayment
penalty fee from the person. Almost all sites have their own EMI calculator
that helps people to calculate their loan amount, interest rates and tenure
period.
