Before you embark on the journey of searching for the right home loan, we recommend that you follow these simple five steps that will make help you make the right home loan choice.

1. Determine your home loan requirement –Before you even start the home loan process, you must evaluate your savings that you can manage for a home loan down payment. Banks usually offer home loan for 75% to 85% of the total value of the house. Which means that the rest 15% to 25% of the home value needs to be arranged by you. It is usually wise to pay as much down payment as you can manage so that you save on home loan interest. Banks also offer better home loan deals when you are able to manage a higher down payment value.

2. Check your home loan eligibility – Although each bank has a different home loan process, a basic home loan eligibility can easily be determined by adhering to the following eligibility factors: your age must be within 21-65 years, you must either be a salaried or a self-employed individual, you must have a stable income and must be atleast employed for the past one year with your current company or be in business for atleast three years, your credit score must be good and your repayment history must have a clean record. Letzbank has a home loan eligibility tool that helps you determine your home loan eligibility.

3. Choose a Property that is legally verified – Even before you approach a bank, it is important that you choose a land/property that is verified as a legal one. This is an important step as banks will do a property valuation to legally access that the property is legally available to be sold and will also ascertain the market value of the property. This is done to verify the property before granting the appropriate home loan amount. Banks usually verify the property through an independent source such as a lawyer who will check the property and if found appropriate will provide a legally verified report of the property to the bank. A home loan borrower can request for a copy of the legally verified property report by paying a nominal fee to the bank.

4. Check your credit score –As home loans are stretched for years and years, banks will ascertain your credit worthiness thoroughly before they pass an approval on your home loan application. Knowledge of credit score is important as it helps you determine your current credit score status and whether you can take any steps to correct incorrect information reported on your credit. Letzbank has partnered with Experian, to help you get access to your credit score information in the most hassle-free manner. Simply login to Letzbank website and find the credit score option under services.

5. Make Different Home Loan Comparisons – There are many banks and independent financial institutions that are offering home loans at attractive rates. So, you must do a thorough research on the best home loan option for you by comparing different banks and see their product offerings. Look for no penalties on pre-payment or part payment or the types of penalties they have for late payments. Compare the interest rates according to your choice. A home loan calculator is also a great option to determine which home loan EMI will suit your monthly expenditure. Letzbank has a list of home loan offerings from top banks. You can benefit from the comparative display of all loans and choose according to loan features. Letzbank also has a home loan EMI calculator that will help you access your EMI within seconds.

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