Home Loan: Before taking home loan, know these important things, otherwise trouble will arise...

Everyone dreams of having their own house. But in this era of inflation, it becomes a little difficult. In such a situation, home loan makes these dreams come true. A house is a need for everyone, but the way property prices have skyrocketed in the last few years, it is not easy for a common man to buy a house with his income. This is the reason why today most people fulfill their dream of owning a house with the help of a home loan. But before taking a home loan, just looking at its interest is not enough. It is important to understand many other things also. If you are also going to take a home loan for the first time, then here are some important tips related to home loans.

1. Before taking a home loan, check your financial condition
According to home loan rules, you have to make some down payment first. This can range from 10 percent to 25 percent of the total price of the property. Also, after taking the loan, your monthly installment will start, which will continue for a long time. In such a situation, you should take a good look at your financial condition. So that you do not have to face any kind of problem later.

2. Decide the loan amount in this way
Let us tell you that before taking a loan, you must calculate how much installment you can easily pay after taking into account all the needs and liabilities. Only after this decide how much amount you have to take as a loan. The simple rule is that your EMI should not exceed 40% of your take-home salary.

3. Compare loan features of banks
While applying for a loan, your credit score should be good. This increases your credibility and your chances of getting the loan approved. With a good credit score, you can sometimes get a loan at better interest rates. Apart from this, there are differences in interest rates, loan amount, LTV ratio, loan tenure, and processing charges of different banks. In such a situation, before applying for a home loan, compare the loan features of banks and then apply for the loan.

4. Benefit of paying more down payment
If your financial condition is good, then give a higher down payment for home loan. This increases your chances of getting the loan approved. Some lenders offer lower interest rates to borrowers who choose a lower LTV ratio. But avoid using your emergency fund to make a higher down payment.

5. Be sure to keep an emergency fund
If you are going to apply for a loan, then keep an emergency fund with you. This should be equal to your EMI installments of 6 months. Many times, it becomes difficult to pay EMI due to job loss or any other circumstance. Due to this, you may be penalized and your credit score may also get damaged. In such a situation, your emergency fund is helpful.

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