Home Loan Tips: Know this important thing before taking a home loan, otherwise you will regret it..

Everyone dreams of having their own house. But, many times, lack of money comes in the way of this dream. The easiest way to deal with this is a home loan. In this, a large amount is taken as a loan from the bank to buy a house and then it is repaid every month in installments (EMI) along with interest. Since the amount of home loan is quite large, there are many risks involved in it. If you take care of some basic things before taking a loan, then you can avoid many unwanted problems.

How is your financial condition?
If you are going to take a home loan, then take a look at your financial situation. Calculate whether you will be able to pay the EMI after settling your essential expenses or not. A down payment is also an important aspect of a home loan, attention should also be paid to it. The most important thing is that after the down payment, you should also have a good amount in the form of savings so that you can deal with sudden problems.

What documents will be required for the loan?
Home loans, income statements, salary slips, form 16, bank statements, latest IT returns, age proof, address proof, photo identity card, and property papers should be kept ready. This increases the chances of loan approval quickly. Your credit score should also be good.

You should also check the hidden cost of the loan so that there is no problem later. These include things like legal fees, technical valuation charges, franking fees, and documentation fees.

What should be the tenure of a home loan?
Usually, lakhs of rupees are taken as loan in home loan. It is not easy for a middle-class man to settle such a huge amount in 4-5 years. This is the reason why most people keep the tenure of home loans for 15 to 20 years or sometimes even more. This reduces the amount of EMI, but you have the tension of repaying the loan for a longer period.

This problem is especially serious for the middle class and working people because any sudden major problem can worsen their financial condition. In such a situation, you should try to finish the home loan as soon as possible according to your convenience.

How to reduce the EMI of home loans?
The higher the loan amount, the longer your EMI period will be and you will have to pay more interest. If you try to finish the loan in a shorter period, you will have to pay more EMI every month, which is difficult for most people.

In such a situation, a higher down payment should be made before buying a house. At least a 25 percent down payment should be made and 75 percent of the amount should be taken as a loan. For example, if you are buying a house worth 40 lakhs, then make a down payment of Rs 10 lakh and make an installment of the remaining 30 lakhs. With this, you can reduce or increase the loan repayment period and EMI according to your convenience.

How to reduce the home loan period?
If you want to repay your home loan in a short time, you can opt for prepayment. Whenever you get extra money, use it to prepay your home loan. This will reduce the principal amount of your loan and can reduce both your loan tenure and EMI. This will be a great deal for you. Reducing the loan tenure will reduce your tension and you will also have to pay less interest to the bank.

What is the benefit of increasing EMI?
If you increase EMI after taking a home loan, you can get rid of the loan burden quickly. If you get a good increment or promotion or get a good package on changing your job, you can increase the EMI. Many banks give the option of revising the installment every year. If your salary has increased, you can take advantage of this and repay your home loan quickly.

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