Your dream to own a house of your own is often realised with the help of a suitable home loan. Home loan is one of the most important loans you will ever undertake and has a lot of financial responsibilities and implications. Therefore, it is important that you take the right step in the home loan decision by banking on a financial company that offers a transparent and flexible loan. We present our go-to-guide for every home loan beginner, to help them champion the art of owning a home with a home loan that’s tailored just for them.

The first and foremost step towards taking a home loan is evaluating your loan requirements as per the house you wish to take. The house that you select should be one that fits your budget and you can realistically repay the home loan for years to come. Home loans have the longest tenure period, which is why, it is important that you choose a home that will not only provide you with a permanent roof over your head; but also continue to make you financially stable in repaying your home loan.

It is important to bear in mind that home loans do not cover the full value of the house. The loan amount approved for a home loan varies between 65% to 85% of the house loan. Therefore, the remaining amount needs to be managed by the borrower. So, evaluate how much of savings you have that can cover the down payment of around 20% to 30% of the home value. The higher down payment you pay, the better it is for you as you will easily be able to cover the remainder of the amount with a home loan and choose the shortest tenure possible that will save interest too.

Once you have determined the down payment amount that you can arrange, it is best to check your home loan eligibility. In case of co-borrowers, both persons should check their eligibility. Letzbank has a great tool to calculate your home loan eligibility within seconds. Every bank has its own eligibility criteria but in general, your income, your monthly expenses, your other loans, your credit history, the property location; are all factors that will be evaluated by a bank.

If you are eligible for a home loan, you can simply check the EMI that you will be paying towards your home loan every month. At the end of the day, EMI is one big factor in deciding the house you wish to buy, as you will be consistently paying this amount for years to come. Also, EMI for home loans are usually calculated on two interest rate types – floating interest rate and a fixed interest rate. While a floating interest rate will change your EMI amount every month depending on the market rate; a fixed interest rate will ensure that your EMI remains the same every month. Any market fluctuations do not impact your EMI amount. Use Letzbank’s Home Loan EMI calculator to check your home loan EMI by simply entering the total loan amount, the interest rate your bank will charge and the loan tenure. Once you submit this information, the home loan EMI calculator will instantly determine your EMI and also present you with a detailed analysis of the amount you will be paying towards interest and principal loan.

Credit Score is also a very important factor that can determine the loan amount approval for you as well as the interest rate that will be charged by your bank. Therefore, it is best that you check your credit rating well in advance to see your borrowing capability. Checking your credit information will also ensure that any incorrect reporting from a previous loan, bank or agency can be duly corrected by the credit agency upon your request. Many people apply for a home loan without knowing their credit score and face rejection on their applications. Making EMIs on other loans on time, how you use your credit cards and whether you make any late payments/defaults; are all factors that make or break your credit score. You can check your Credit Score instantly online by logging into Letzbank and using their Credit Score check service that is provided to you in partnership with a credit-reporting agency called Experian.

Last but not the least, your Home Loan Agreement is the most important piece of information. You must read the terms and conditions provided in your home loan agreement thoroughly and check all the fees and charges levied by the banks. Look for a bank that does not offer any penalty for pre-payment or part payment in home loans. Cross check all the important information that was verbally told to you by the bank in your loan agreement. A home loan agreement that you sign is a legal binding agreement that is between you and the bank, therefore, you must be careful and proceed with caution. And always keep your home loan agreement copy in a safe place even after your loan application is approved, even after your loan ends.

These are some of the factors that are important to note when a beginner goes for a home loan. You can find some of the best home loan deals at Letzbank website and easily make a comparison between different loan types to determine the best option for you. Use the Instant Quote feature to unlock direct access to custom loan offers from banks that are provided by Letzbank through its tie-ups with different banking companies. Letzbank also waives off service charges that are applicable on all loan applications. All you need to do is submit your home loan application directly at Letzbank and get the service charge waiver. Let the experts handle your loan application so that you can be rest assured that you get the best deals and financial expertise that you truly deserve.

[button class="btn-primary" link = "https://www.letzbank.com/bank-search/home-loan"]Check Your Eligibility[/button]

: