What are the things that need to consider before applying for a Home loan?

Home loan

Last Updated on July 30, 2022 by

Investment in the home is the major decision that the person needs to take in. sometimes the financial health of the person is not very strong, so he cannot immediately buy a house. But don’t worry the facility home loans have made the wish to buy a home has come true. There are different offers available in the market regarding home loans. First of all the person needs to look for the mortgage UAE broker that has all the information regarding different home loans. Further, he can conveniently guide his client. 

Before the application of the home loan, there is a list of aspects that needs to be considered. Let’s have a look at them.

  • Interest payments: The most important thing in a home loan is its interest. It will be better if the person goes for the home loan that charges the lowest interest. There are two types of interest charged by banks of financial institutions i.e. floating or fixed interest. The floating rate of interest keeps on changing and it is based on the RBI’s base rate. On the other hand, fixed interest remains the same throughout the loan period. So accordingly the person can go for the interest rate.
  • Tenure: It is the period in which the loan needs to be repaid. A person can extend the home loan up to 20 years which means there can be 240 installments. If the person is ready to bear the high installments, so he can go for the shorter tenure of the loan. But if he is not in the state to pay heavy EMI, he can easily extend the tenure of the repayment. So before getting a loan, it is very important to know about financial health.
  • Down payment: The lending institutions will only offer a certain part of the home loan. The remainder portion, a person needs to bear on his own. The borrower needs to pay a certain minimum down payment. A good sizeable down payment improves the chances of the eligibility of the home loan. It will great to provide a high amount as the down payment to lower the repayment burden.
  • Associated charges: While applying for the loan, it is very important to have all the information regarding all the associated charges of the loans. The borrower must check in the processing fee, late payment penalties, and even the foreclosure charges. All these payments might play important role in the selection of the home loan.
  • Credit score: almost all applicants needs to check their credit score before the application for a home loan. A healthy score i.e. higher than 750 will help the person to secure a loan at low interest rates. It is always good to clear all the pending dues to build a healthy credit score for availing home loan.

So if the person considers all these points, he will surely be going to get his hands on the most appropriate home loans. Rest take help of the home loans for expats in Dubai for more information about them. 

Read More: Aware Yourself with These Things Before Applying for a Housing Loan