With multiple HFCs serving out a host of loan options to the home buyer, access to your dream home is now easier than ever. Add to this, a juicy government subsidy that makes your home buying decision a lot more economical. However, you need to know a few important things to look and prepare for, so you can secure the benefits of these home owning options.

1. Navigateyourwaytoyourdreamhome.
With mul ple HFCs serving out a host of loan op ons to the home buyer, access to your dream home is
noweasierthan ever.Add to this,ajuicygovernmentsubsidythatmakesyour homebuyingdecisionalot
more economical. However, you need to know a few important things to look and prepare for, so you can
securethebenefitsofthesehomeowningop ons.
Isittherightone?
Choosingtherightkindofloanisthefirststeptowardsowningyourdreamhome.
It is however, necessary to note that despite being able to avail your home loan, you will have to solve the
puzzleofpaperworkandacquaintyourselfwiththeni y-gri yoftakingahomeloan
Belowareafewimportantaspectsyoumustkeepinmindbeforeyousignthepapers;
What’stheloancontribu ontowardsthecostofyourproperty?
This defines the ra o of a loan to the value of an asset purchased. Earlier the LTV was 80 per cent of the
value,butnowithasbeenincreasedto90percentofthehomeloanvalueforproper esupto`30lakh.
CanyouaffordtheEMI?
Typically,themostcri calpartofnego a ngahomeloansofferfromthehome-buyersperspec veisthe
monthlyou lowofmoneytowardsrepayingthehomeloansistheequatedmonthlyinstalmentorEMIas
heard and said commonly.If you followthegolden rule,your EMI should never40-45percent of your net
monthlyincome.
Areyouinterested?
Fixed and floa ng are the interest rates that home loans come with. While the former arrangement
charges an interest rate that remain constant for a period of 3 -5 years (variable), or the full tenure of the
loans, the la er charges interest rate depending on the movement of cost of funds for the financial
ins tu ons. The rate of your home loans can increase or decrease depending upon the cost of funds.
Generally speaking, the fixed rate regime is higher than the floa ng rate regime and should you opt for
the former regime; you need to be cognizant of the interest-rate scenario. Besides selec ng a par cular
interest-rate,youcanalwaysswitchfromtheon-goinginterestrateop ontotheotheravailableop on.
What’syourscore?
Credit score is a key factor for assessing the individual’s home loan eligibility and interest rate
component. The approval of a home loans and the credit-worthiness of the loan-seeker are all
determined by the credit score. Despite the fact that a good credit score can have things move faster, it is
not the sole criteria. Usually, banks and financial ins tu ons prefer borrowers with a credit score over
750asitimpliesastrongcredit-worthiness.