Market research essential before taking a home loan

A lot of Housing Finance Companies have surfaced over the last few years, primarily due to the increase in the demand of home loans; offering a lot of choices to the home loan borrowers. It is a good thing to have a lot of options to choose from but sometimes a customer can find him in baffled state.

Different lenders have different lending schemes that offers loan at different interest rates, so a borrower must reckon well before finalizing a loan. Interest rate is the major factor that decides the EMI to be paid by the borrower that is why proper market research is very essential.

Generally HFC’s finance maximum of 80 percent of the total cost of the house and so the borrower has to arrange the remaining amount all by himself and hence the home loans are generally hefty, so it can effect the future needs of a borrower and hence a borrower must plan the loan very well, keeping all the future prospects in mind.

The loan agreement is a very important document that contains all the terms and conditions and all the loan related documents, so a borrower must and understand the norms mentioned in that very well before signing the document. Apart from the interest rate, there are a lot of hidden costs that the lenders generally don’t mentions in the advertisement all these things are listed in the loan agreement.

During the loan tenure depending on the monetary condition of the borrower, he can accelerate or de-accelerate the EMI amount and can choose from various re-payment options available. A borrower can also pre-pay his loan before the time period, but for that the lender will levy charges on the borrower.